1.
Sales price per unit | - | Variable cost per unit | = | Unit contribution margin | |
25 | - | 19.5 | = | 5.5 | per birdbath |
Unit contribution margin | / | Sales price per unit | = | Contribution margin ratio |
5.5 | / | 25 | = | 22% |
2.
Sales revenue | 35000 | [1400*25] |
Variable costs | 27300 | [1400*19.5] |
Contribution Margin | 7700 | |
Fixed costs | 4180 | |
Net operating income | 3520 |
Workings:
Direct Materials | 1500 |
Direct Labor | 7500 |
Utilities | 550 |
Maintenance | 200 |
Total variable cost | 9750 |
No of units | 500 |
Variable cost per unit | 19.50 |
Utilities | 100 |
Supervisor's salary | 3000 |
Maintenance | 280 |
Depreciation | 800 |
Total fixed cost | 4180 |
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Required information E5-4 and E5-5 [LO 5-1, 5-5) 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 0-1,500 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 ($150 fixed) Supervisor's salary Maintenance ($270 fixed) Depreciation Total Cost $ 2,900...
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 0-1,500 units, and monthly production costs for the production of 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 ($100 fixed) Supervisor's salary Maintenance ($280 fixed) Depreciation Total...
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i Saved Help Save & Exit Required information E5-4 and E5-5 [LO 5-1, 5-5) Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all unitsit produces each month. The relevant range is 0-1,900 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 ($150 fixed) Supervisor's salary Maintenance ($280 fixed)...