Required information 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 0-1,700 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 raterials Direct labor Utilities (5108 fixed) Supervisor's salary Maintenance ($308 fixed) Depreciation Total Cost $2,708 7,100 648 2,908 530 800 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 sells 1,400 units.
Required information 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 0-1,700 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 raterials Direct labor Utilities (5108 fixed) Supervisor's salary Maintenance ($308 fixed) Depreciation Total Cost $2,708 7,100 648 2,908 530 800 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 sells 1,400 units.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please do not give solution in image format thanku
Transcribed Image Text:Required information
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 0-1,700 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 raterials
Direct labor
Utilities ($100 fixed)
Supervisor's salary
Maintenance ($300 fixed)
Depreciation
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
Suppose it sells each birdbath for $30.
Required:
Total Cost
$2,708
7,108
648
Required 1 Required 2
1. Calculate the unit contribution margin and contribution margin ratio for each birdbath sold.
2. Complete the contribution margin income statement assuming that Moming Dove produces and sells 1,400 units.
Complete this question by entering your answers in the tabs below.
2,908
538
808
Required 1 Required 21
Calculate the unit contribution margin and contribution margin ratio for each birdbath sold. (Round Variable cost per unit to 2
decimal places. Round your contribution margin ratio to 2 decimal places. Enter all amounts as positive values.)
Contribution Margin
MORNING DOVE COMPANY
Contribution Margin Income Statement
Expected for 1,400 Units
Net Operating Income
Unit Contribution Margin
Required 1
= Contribution Margin Ratio
Required 2 >
Complete the contribution margin income statement assuming that Morning Dove produces and sells 1,400 units. (Round your
intermediate calculation to 2 decimal places.)
1,400 units.
per Birbath
Rogudret 3
%
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education