E5-5 (Algo) Calculating Contribution Margin and Contribution Margin Ratio, Preparing Contribution Margin Income Statement [LO 5-5] Suppose it sells each birdbath for $24. Required: 1. Calculate the unit contribution margin and contribution margin ratio for each birdbath sold. 2. Complete the contribution margin income statement assuming that Morning Dove produces and sells 1,800 units. Required 1 Required 2 Calculate the unit contribution margin and contribution margin ratio for each birdbath sold. (Round Variable cost per unit decimal places. Round your contribution margin ratio to 2 decimal places. Enter all amounts as positive values.) Sales price per unit Unit Contribution Margin Required 1 Required 2 Sales Revenue Variable Costs Variable Cost per Unit MORNING DOVE COMPANY Contribution Margin Income Statement Expected for 1,800 Units Contribution Margin Fixed Costs Sales price per unit Net Operating Income = Unit Contribution Margin Complete the contribution margin income statement assuming that Morning Dove produces and sells 1,800 units. (Round intermediate calculation to 2 decimal places.) = Contribution Margin Ratio per Birdbath. %
E5-5 (Algo) Calculating Contribution Margin and Contribution Margin Ratio, Preparing Contribution Margin Income Statement [LO 5-5] Suppose it sells each birdbath for $24. Required: 1. Calculate the unit contribution margin and contribution margin ratio for each birdbath sold. 2. Complete the contribution margin income statement assuming that Morning Dove produces and sells 1,800 units. Required 1 Required 2 Calculate the unit contribution margin and contribution margin ratio for each birdbath sold. (Round Variable cost per unit decimal places. Round your contribution margin ratio to 2 decimal places. Enter all amounts as positive values.) Sales price per unit Unit Contribution Margin Required 1 Required 2 Sales Revenue Variable Costs Variable Cost per Unit MORNING DOVE COMPANY Contribution Margin Income Statement Expected for 1,800 Units Contribution Margin Fixed Costs Sales price per unit Net Operating Income = Unit Contribution Margin Complete the contribution margin income statement assuming that Morning Dove produces and sells 1,800 units. (Round intermediate calculation to 2 decimal places.) = Contribution Margin Ratio per Birdbath. %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is 0-1,900 units, and monthly production costs for the production of 1,600 units follow. Morning Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses.
Suppose it sells each birdbath for $24.
- Calculate the unit contribution margin and contribution margin ratio for each birdbath sold.
- Complete the contribution margin income statement assuming that Morning Dove produces and sells 1,800 units.
![Required information
E5-4 and E5-5 [LO 5-1, 5-5]
Morning Dove Company manufactures one model of birdbath, which is very popular. Morning
Dove sells all units it produces each month. The relevant range is 0-1,900 units, and monthly
production costs for the production of 1,600 units follow. Morning Dove's utilities and maintenance
costs are mixed with the fixed components shown in parentheses.
Production Costs
Direct materials
Direct labor
Utilities ($130 fixed)
Supervisor's salary.
Maintenance ($280 fixed)
Depreciation
Total Cost
$3,100
7,100
570
2,800
480
800](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F771ce31f-7488-4bd5-b9c6-b862d83ada4d%2Fd8b7e8ef-ed07-4706-af70-e8fd27c88b9e%2Fr981zgl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
E5-4 and E5-5 [LO 5-1, 5-5]
Morning Dove Company manufactures one model of birdbath, which is very popular. Morning
Dove sells all units it produces each month. The relevant range is 0-1,900 units, and monthly
production costs for the production of 1,600 units follow. Morning Dove's utilities and maintenance
costs are mixed with the fixed components shown in parentheses.
Production Costs
Direct materials
Direct labor
Utilities ($130 fixed)
Supervisor's salary.
Maintenance ($280 fixed)
Depreciation
Total Cost
$3,100
7,100
570
2,800
480
800
![E5-5 (Algo) Calculating Contribution Margin and Contribution Margin Ratio, Preparing
Contribution Margin Income Statement [LO 5-5]
Suppose it sells each birdbath for $24.
Required:
1. Calculate the unit contribution margin and contribution margin ratio for each birdbath sold.
2. Complete the contribution margin income statement assuming that Morning Dove produces and sells 1,800 units.
Required 1 Required 2
Calculate the unit contribution margin and contribution margin ratio for each birdbath sold. (Round Variable cost per unit t
decimal places. Round your contribution margin ratio to 2 decimal places. Enter all amounts as positive values.)
Sales price per unit
Unit Contribution Margin
Required 1 Required 2
Sales Revenue
Variable Costs
Variable Cost per Unit
MORNING DOVE COMPANY
Contribution Margin Income Statement
Expected for 1,800 Units
Contribution Margin
Fixed Costs
Sales price per unit
Net Operating Income
= Unit Contribution Margin
=
Complete the contribution margin income statement assuming that Morning Dove produces and sells 1,800 units. (Round
intermediate calculation to 2 decimal places.)
Contribution Margin Ratio
per Birdbath
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F771ce31f-7488-4bd5-b9c6-b862d83ada4d%2Fd8b7e8ef-ed07-4706-af70-e8fd27c88b9e%2F7naay_processed.jpeg&w=3840&q=75)
Transcribed Image Text:E5-5 (Algo) Calculating Contribution Margin and Contribution Margin Ratio, Preparing
Contribution Margin Income Statement [LO 5-5]
Suppose it sells each birdbath for $24.
Required:
1. Calculate the unit contribution margin and contribution margin ratio for each birdbath sold.
2. Complete the contribution margin income statement assuming that Morning Dove produces and sells 1,800 units.
Required 1 Required 2
Calculate the unit contribution margin and contribution margin ratio for each birdbath sold. (Round Variable cost per unit t
decimal places. Round your contribution margin ratio to 2 decimal places. Enter all amounts as positive values.)
Sales price per unit
Unit Contribution Margin
Required 1 Required 2
Sales Revenue
Variable Costs
Variable Cost per Unit
MORNING DOVE COMPANY
Contribution Margin Income Statement
Expected for 1,800 Units
Contribution Margin
Fixed Costs
Sales price per unit
Net Operating Income
= Unit Contribution Margin
=
Complete the contribution margin income statement assuming that Morning Dove produces and sells 1,800 units. (Round
intermediate calculation to 2 decimal places.)
Contribution Margin Ratio
per Birdbath
%
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