[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 1,100 units follow, Morning Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses. Production Costs Direct materials. Dipet labor Utrities ($110 fixed) Supervisor's salary. Maintenance ($330 fixed) Depreciation Total Cost $1,900 7,900 570 3,000 520 850 E5-5 (Algo) Calculating Contribution Margin and Contribution Margin Ratio, Preparing Contribution Margin Income Statement [LO 5-5] Suppose it sells each birdbath for $28. 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 1,300 units.
[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 1,100 units follow, Morning Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses. Production Costs Direct materials. Dipet labor Utrities ($110 fixed) Supervisor's salary. Maintenance ($330 fixed) Depreciation Total Cost $1,900 7,900 570 3,000 520 850 E5-5 (Algo) Calculating Contribution Margin and Contribution Margin Ratio, Preparing Contribution Margin Income Statement [LO 5-5] Suppose it sells each birdbath for $28. 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 1,300 units.
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 4EB: Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all...
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![[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 1,100
units follow, Morning Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses.
Production Costs
Direct materials.
Diret labor
Utities ($110 fixed)
Supervisor's salary.
Maintenance ($330 fixed)
Depreciation
Total Cost
$ 1,900
7,900
570
3,000
520
850
E5-5 (Algo) Calculating Contribution Margin and Contribution Margin Ratio, Preparing Contribution
Margin Income Statement [LO 5-5)
Suppose it sells each birdbath for $28.
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 1,300 units.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F27c9ffc8-caf5-4a01-9236-94db3faf410c%2F39f66b1c-4e60-4a33-8cfa-738690845eed%2Fsebrm4l_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[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 1,100
units follow, Morning Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses.
Production Costs
Direct materials.
Diret labor
Utities ($110 fixed)
Supervisor's salary.
Maintenance ($330 fixed)
Depreciation
Total Cost
$ 1,900
7,900
570
3,000
520
850
E5-5 (Algo) Calculating Contribution Margin and Contribution Margin Ratio, Preparing Contribution
Margin Income Statement [LO 5-5)
Suppose it sells each birdbath for $28.
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 1,300 units.
![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 1,300 units.
Complete this question by entering your answers in the tabs below.
Required
Required 2
Required 1
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.
Unit Contribution Margin
Contribution margin
(Required 1
Net operating income
.
< Required 1
W
=
Contribution Margin Ratio
Required 2 >
Complete the contribution margin income statement assuming that Morning Dove produces and sells 1,300 units.
Morning Dove Company
Contribution Margin Income Statement
Expected for 1,300 Units
per Birdbath
Required 2 >
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F27c9ffc8-caf5-4a01-9236-94db3faf410c%2F39f66b1c-4e60-4a33-8cfa-738690845eed%2Fjd2horn_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 1,300 units.
Complete this question by entering your answers in the tabs below.
Required
Required 2
Required 1
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.
Unit Contribution Margin
Contribution margin
(Required 1
Net operating income
.
< Required 1
W
=
Contribution Margin Ratio
Required 2 >
Complete the contribution margin income statement assuming that Morning Dove produces and sells 1,300 units.
Morning Dove Company
Contribution Margin Income Statement
Expected for 1,300 Units
per Birdbath
Required 2 >
%
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