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 1,800 units, and monthly production costs for the production of 1,500 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 ($320 fixed) Depreciation Total Cost $ 1,900 7,700 580 2,900 470 800 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 1,700 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. < Required 1 = Unit Contribution Margin = per Birdbath = Contribution Margin Ratio = Required 2 > %
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 1,800 units, and monthly production costs for the production of 1,500 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 ($320 fixed) Depreciation Total Cost $ 1,900 7,700 580 2,900 470 800 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 1,700 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. < Required 1 = Unit Contribution Margin = per Birdbath = Contribution Margin Ratio = Required 2 > %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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 1,800 units, and monthly production costs for the production of 1,500
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 ($320 fixed)
Depreciation
Total Cost
$ 1,900
7,700
580
2,900
470
800
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 1,700 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.
< Required 1
= Unit Contribution Margin
=
per Birdbath
= Contribution Margin Ratio
=
Required 2 >
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F178b9281-9609-4193-a2f2-0759cb191452%2Fa2fb6dfb-8b4b-4ef5-bc14-f29726387034%2Fmqzsg7s_processed.jpeg&w=3840&q=75)
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 1,800 units, and monthly production costs for the production of 1,500
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 ($320 fixed)
Depreciation
Total Cost
$ 1,900
7,700
580
2,900
470
800
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 1,700 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.
< Required 1
= Unit Contribution Margin
=
per Birdbath
= Contribution Margin Ratio
=
Required 2 >
%
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