#19

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 02,000 units, and monthly production costs for the production of 1,600 units follow. Morning Doves utilities and maintenance costs are mixed with the fixed components shown in parentheses.

Production Costs	Total Cost
Direct materials	$	2,100
Direct labor		8,100
Utilities ($110 fixed)		590
Supervisors salary		2,600
Maintenance ($250 fixed)		500
Depreciation		850

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 1,800 units.

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.) = Unit Contribution Margin per Birdbath Contribution Margin Ratio % Complete the contribution margin income statement assuming that Morning Dove produces and sells 1,800 units. (Round your intermediate calculation to 2 decimal places.) MORNING DOVE COMPANY Contribution Margin Income Statement Expected for 1,800 Units Contribution Margin Net Operating Income