1. value: 10 points The following costs result from the production and sale of 4,050 drum sets…


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1. value: 10 points The following costs result from the production and sale of 4,050 drum sets… 1 answer below » 1. value: 10 points The following costs result from the production and sale of 4,050 drum sets manufactured by Vince Drum Company for the year ended December 31, 2011. The drum sets sell for $255 each. The company has a 30% income tax rate. Variable production costs Plastic for casing Wages of assembly workers Drum stands Variable selling costs Sales commissions Fixed manufacturing costs Taxes on factory Factory maintenance Factory machinery depreciation Fixed selling and administrative costs Lease of equipment for sales staff Accounting staff salaries Administrati ve management salaries View complete question » 1. value: 10 points The following costs result from the production and sale of 4,050 drum sets manufactured by Vince Drum Company for the year ended December 31, 2011. The drum sets sell for $255 each. The company has a 30% income tax rate. Variable production costs Plastic for casing Wages of assembly workers Drum stands Variable selling costs Sales commissions Fixed manufacturing costs Taxes on factory Factory maintenance Factory machinery depreciation Fixed selling and administrative costs Lease of equipment for sales staff Accounting staff salaries Administrati ve management salaries Required: $ 72,900 336,150 109,350 64,800 10,500 21,000 81,000 21,000 71,000 151,000 _x000C_1. Prepare a contribution margin income statement for the company. (Input all amounts as positive values. Omit the “$” sign in your response.) VINCE DRUM COMPANY Contribution Margin Income Statement For Year Ended December 31, 2011 (4,050 units) $ Variable costs $ Fixed costs $ 2.1 Compute its contribution margin per unit. (Input all amounts as positive values. Omit the “$” sign in your response.) VINCE DRUM COMPANY Contribution Margin Income Statement For Year Ended December 31, 2011 Per unit $ Variable costs $ _x000C_$ 2.2 Compute its contribution margin ratio. (Round your intermediate and final answer to 2 decimal places. Omit the “%” sign in your response.) Contribution margin ratio % Document Preview: 1.
value: 10 points
 
The following costs result from the production and sale of 4,050 drum sets manufactured by Vince Drum Company for the year ended December 31, 2011. The drum sets sell for $255 each. The company has a 30% income tax rate.

 
 
 
 Variable production costs
 
 
 Plastic for casing
$
72,900  
 Wages of assembly workers
 
336,150  
 Drum stands
 
109,350  
 Variable selling costs
 
 
 Sales commissions
 
64,800  
 Fixed manufacturing costs
 
 
 Taxes on factory
 
 10,500  
 Factory maintenance
 
21,000  
 Factory machinery depreciation
 
81,000  
 Fixed selling and administrative costs
 
 
 Lease of equipment for sales staff
 
21,000  
 Accounting staff salaries
 
71,000  
 Administrative management salaries
 
151,000  

Required:
1.
Prepare a contribution margin income statement for the company. (Input all amounts as positive values. Omit the “$” sign in your response.)

VINCE DRUM COMPANY Contribution Margin Income Statement For Year Ended December 31, 2011
 
(4,050 units)
 
 
$  
 Variable costs
 
 
 
$  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Fixed costs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$  
 
 
2.1
Compute its contribution margin per unit. (Input all amounts as positive values. Omit the “$” sign in your response.)

VINCE DRUM COMPANY Contribution Margin Income Statement For Year Ended December 31, 2011
 
Per unit
 
 
$  
 Variable costs
 
 
 
$  
 
 
 
 
 
 
 
 
 
 
 
 
 
$  
 
 

2.2
Compute its contribution margin ratio. (Round your intermediate and final answer to 2 decimal places. Omit the “%” sign in your response.)

 Contribution margin ratio
% Attachments: Q.-Attment.docx View less » Sep 09 2015 04:48 PM

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