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.
In a recent annual report, Fourth Wall Inc. (formerly Greencube) disclosed that 61,700,000 shares of common stock have been authorized. At the beginning of the fiscal year, a total of 35,959,092 shares had been issued and the number of shares in treasury stock was 7,341,269. During the year, 567,265 additional shares were issued, and the number of treasury shares increased by 3,119,188. Determine the number of shares outstanding at the end of the year. (Amounts to be deducted should be indicated by a minus sign.)
