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1 Required information Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month.
1 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 0-1,900 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 ($130 fixed) Supervisor's salary Maintenance ($300 fixed) Depreciation Total Cost $1,700 7,300 650 3,400 490 750 Suppose it sells each birdbath for $22. 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. (Round Variable cost per unit to 2 decimal places. Round your contribution margin ratio to 2 decimal places. Enter all amounts as positive values.) Sales price per unit $ Variable Cost per Unit 22.00 Unit Contribution Margin per Birdbath Unit Contribution Margin Sales price per unit Contribution Margin Ratio $ 22.00 %
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