Required information E5-4 and E5-5 [LO 5-1, 5-5] [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 1,200 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 ($140 fixed) Supervisor's salary Maintenance ($320 fixed) Depreciation Total Cost $ 2,500 7,500 600 3,300 540 700 E5-5 (Algo) Calculating Contribution Margin and Contribution Margin Ratio, Preparing Contribution Margin Income Statement [LO 5-5] Suppose it sells each birdbath for $20. 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 1,400 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2
Required information E5-4 and E5-5 [LO 5-1, 5-5] [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 1,200 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 ($140 fixed) Supervisor's salary Maintenance ($320 fixed) Depreciation Total Cost $ 2,500 7,500 600 3,300 540 700 E5-5 (Algo) Calculating Contribution Margin and Contribution Margin Ratio, Preparing Contribution Margin Income Statement [LO 5-5] Suppose it sells each birdbath for $20. 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 1,400 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
E5-4 and E5-5 [LO 5-1, 5-5]
[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 1,200
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 ($140 fixed)
Supervisor's salary
Maintenance ($320 fixed)
Depreciation
Total Cost
$ 2,500
7,500
600
3,300
540
700
E5-5 (Algo) Calculating Contribution Margin and Contribution Margin Ratio, Preparing Contribution
Margin Income Statement [LO 5-5]
Suppose it sells each birdbath for $20.
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 1,400 units.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
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Transcribed Image Text:Required information
E5-4 and E5-5 [LO 5-1, 5-5]
[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 1,200
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 ($140 fixed)
Supervisor's salary
Maintenance ($320 fixed)
Depreciation
Total Cost
$ 2,500
7,500
600
3,300
540
700
E5-5 (Algo) Calculating Contribution Margin and Contribution Margin Ratio, Preparing Contribution
Margin Income Statement [LO 5-5]
Suppose it sells each birdbath for $20.
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 1,400 units.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
< Prev
S
2
of 4 H
Next >
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