The following costs result from the production and sale of 4,450 drum sets manufactured by Tight Drums Company for the year ended December 31, 2019. The drum sets sell for $295 each. The company has a 30% income tax rate.
Variable production costs
Plastic for casing $185,000
Wages of assembly workers 510,000
Drum stands 230,000
Variable selling costs
Sales commissions 175,000
Fixed manufacturing costs
Taxes on factory 5,000
Factory maintenance 10,000
Factory machinery depreciation 70,000
Fixed selling and administrative costs
Lease of equipment for sales staff 10,000
Accounting staff salaries 60,000
Administrative management salaries 140,000
Required:
Prepare a contribution margin income statement for the company.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The following costs result from the production and sale of 4,450 drum sets manufactured by Tight Drums Company for the year ended December ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Which investment vehicle carries the least risk? A Government bonds B Large company stocks C Small company stocks D OU. S. Treasury bills
Answers (1)
The current market price of a share of AT&T stock is $50. If a put option on this stock has a strike price of $45, the put sells for a lower price than if the market price of AT&T stock is $40.
Answers (1)
Briggs and stratton is a southeastern company that makes small engines. the company is looking at customer trends, its competitors, and the economy to see if there are any threats or opportunities on the horizon.
Answers (1)
Daniel, a cabinet-maker, contracts to make a china cabinet to Lora's satisfaction and Lora promises to pay Daniel $2,800 for the cabinet if she is satisfied with it when completed.
Answers (1)
Joyce was injured by an uninsured drunk driver while she was riding in a friend's car. Joyce and her friend each have a PAP with an uninsured motorists limit of $50,000.
Answers (1)
New Questions in Business
One of Simplex Company's products has a contribution margin of $44,000 and fixed costs totaling $54,000. If the product is dropped, $37,000 of the fixed costs will continue unchanged.
Answers (1)
When technology spillover occurs, a. those firms engaged in technology research should be taxed by the government. b. a firm's research yields technological knowledge that can then be used by society as a whole. c.
Answers (1)
Shot-term financial goals include saving for
Answers (1)
The current sections of Sandhill Co.'s balance sheets at December 31, 2021 and 2022, are presented here. Sandhill Co's net income for 2022 was $137,700. Depreciation expense was $24,300.
Answers (1)
Vincent Corporation has 92,000 share of $105 par common stock outstanding. On June 30, Vincent Corporation declared a 3% stock dividend to be issued July 30 to stockholders of record July 15. The market price of the stock was $118 a share on June 30.
Answers (1)