Question

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 0-1,800 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 ($100 fixed) Supervisor's salary Maintenance ($270 fixed) Depreciation Total Cost $ 1,700 8,100 560 2,500 500 800 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 1,700 units. Complete this question by entering your answers in the tabs below.

fill in the blanks

Answer 1

Sales	$        51,000	=1700*30
Variable Costs	$        11,883	=1700*6.99
Contribution Margin	$       39,117
Fixed Costs	$          3,670	=100+2500+270+800
Net Opearting Income	$       35,447

If you have any query, kindly comment with your query and please mark thumbs up.