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 1,700 units, and monthly production costs for the production of 1,400 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 ($100 fixed) Supervisor's salary Maintenance ($340 fixed) Depreciation Total Cost $ 2,900 6,900 630 3,400 500 850 Suppose itsells each birdbath for $30. 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 2 Calculate 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 Sales price per unit Variable Cost per Unit Unit Contribution Margin Sales price per unt Contribution Margin Rato per Bedbath

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 2
Complete the contribution margin income statement assuming that Morning Dove produces and sells 1,600 units.
Morning Dove Company
Contribution Margin Income Statement
Expected for 1,600 Units
Contribution margini
Net operating income
< Required 1
Required 2 >
Che
Transcribed Image Text:Required information 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 2 Complete the contribution margin income statement assuming that Morning Dove produces and sells 1,600 units. Morning Dove Company Contribution Margin Income Statement Expected for 1,600 Units Contribution margini Net operating income < Required 1 Required 2 > Che
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 1,700 units, and monthly production costs for the production of 1,400
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 ($100 Fixed)
Supervisor's salary
Maintenance ($340 fixed)
Depreciation
Total Cost
$ 2,900
6,900
630
3,400
500
850
Suppose it sells each birdbath for $30.
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 selis 1,600 units.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Calculate 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
Sales price per unit
Variable Cost per Unit
Unit Contribution Margin
1
Sales price per unit
.
Contribution Margin Ratio
im
per Bedbath
%
Transcribed Image Text: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 1,700 units, and monthly production costs for the production of 1,400 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 ($100 Fixed) Supervisor's salary Maintenance ($340 fixed) Depreciation Total Cost $ 2,900 6,900 630 3,400 500 850 Suppose it sells each birdbath for $30. 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 selis 1,600 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate 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 Sales price per unit Variable Cost per Unit Unit Contribution Margin 1 Sales price per unit . Contribution Margin Ratio im per Bedbath %
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