Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units itproduces each month. The relevant range is 0 to 1,900 units, and monthly production costs for the production of 1,400units follow. Morning Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses.Production CostsDirect materialsDirect laborUtilities ($110 fixed))Supervisor's salaryMaintenance ($330 fixed)DepreciationTotal Cost$ 3,1006,9005702,900470750Suppose it sells each birdbath for $22.Required:1. Calculate the unit contribution margin and contribution margin ratio for each birdbath sold.2. Complete the contribution margin income statement assuming that Morning Dove produces and sells 1,600 units.Complete this question by entering your answers in the tabs below.Required 1 Required 2Calculate the unit contribution margin and contribution margin ratio for each birdbath sold.Note: Round your intermediate calculations and final answer to 2 decimal places. Enter all amounts as positive values. Required 1 Required 2Complete the contribution margin income statement assuming that Morning Dove produces and sells 1,600 units.Morning Dove CompanyContribution Margin Income StatementExpected for 1,600 UnitsSales revenueVariable costsContribution marginFixed costsNet operating incomeComplete this question by entering your answers in the tabs below.Sales price per unit$Unit Contribution MarginRequired 1 Required 2Calculate the unit contribution margin and contribution margin ratio for each birdbath sold.Note: Round your intermediate calculations and final answer to 2 decimal places. Enter all amounts as positive values.22.0035,20016,73611.5418,4641Variable Cost per Unit$Sales price per unit$Required 110.4622.00=Unit Contribution Margin$Contribution Margin RatioRequired 2 >11.54 per Birdbath52.45 %

The contribution margin per unit is calculated as the difference between sales price and variable…

Answered: Morning Dove Company manufactures one…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Required information [The following information applies to the questions displayed below.] 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 to 1,600 units, and monthly production costs for the production of 1,300 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 ($110 fixed) Supervisor's salary Maintenance ($270 fixed) Depreciation Total Cost $ 2,500 8,100 650 3,000 510 750 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 1,500 units.
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