1 | |||||
Sales price per unit | - | Variable cost per unit | = | Unit Contribution margin | |
26.00 | 7.11 | 18.89 | per Birdbath | ||
Unit Contribution margin | / | Sales price per unit | = | Contribution margin ratio | |
18.89 | 26.00 | 72.65% | |||
2 | |||||
Contribution Margin income statement | |||||
Sales revenue | 46800 | =1800*26 | |||
Variable costs | 12798 | =1800*7.11 | |||
Contribution margin | 34002 | ||||
Fixed costs | 4080 | ||||
Net operating income | 29922 |
Workings: | ||
Direct materials | 1.94 | =3100/1600 |
Direct labor | 4.81 | =7700/1600 |
Utilities | 0.28 | =(590-140)/1600 |
Maintenance | 0.08 | =(470-340)/1600 |
Variable cost per unit | 7.11 | |
Utilities | 140 | |
Supervisor's salary | 2800 | |
Maintenance | 340 | |
Depreciation | 800 | |
Total fixed costs | 4080 |
E5-4 and E5-5 [LO 5-1, 5-5) Morning Dove Company manufactures one model of birdbath, which is...
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 0-2,000 units, and monthly production costs for the production of 1.600 units follow. Morning Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses. Production Conts Direct materials Direct labor Utilities ($140 fixed) Supervisor's salary Maintenance ($340 fixed) Depreciation Total Cost $3,100 7,700 590 2,800...
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 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 0-1,900 units, and monthly production costs for the production of 1,400 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 ($340 fixed) Depreciation Total Cost $2,300 6,900...
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 0-2,000 units, and monthly production costs for the production of 1,700 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 $1,500 7,300...
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 0-2,000 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 ($140 fixed) Supervisor's salary Maintenance ($300 fixed) Depreciation Total Cost $2,300 7,700...
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 0-1900 units, and monthly production costs for the production of 1,400 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 (5340 fixed) Depreciation Total Cost $ 2,300 6,900 610 2,500 450 750 E5-5 (Algo) Calculating...
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 1,300 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 ($130 fixed) Supervisor's salary Maintenance ($290 fixed) Depreciation Total Cost $1,700 7,900 600 2,900 490 800 Suppose it...
Required information points 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 0-2,000 units, and monthly production costs for the production of 1,600 units follow. Morning Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses. eBook Total Cost $1,900 6,500 Hint Production Costs Direct materials Direct labor Utilities ($120 fixed) Supervisor's salary Maintenance ($330 fixed) Depreciation 560 Print 2,800...
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 1,300 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 (5140 fixed) Supervisor's salary Maintenance ($250 fixed) Depreciation Total Cost $ 2,5ee 7,1ee 640 3,000 480 750 Suppose...
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 0-1,500 units, and monthly production costs for the production of 1,000 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 ($280 fixed) Depreciation Total Cost $1,900 6.900 600 2,800 450 Suppose it sells...