E5 3 Calculating Contribution Margin and Contribution Ratio, Preparing Contribution Margin Income Statement LO 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 02,500 units, and monthly production costs for the production of 2,200 units follow Morning Doves utilities and maintenance costs are mixed with the fixed components shown in parentheses Production Costs Total Cost Direct materials $ 1,500 Direct labor 6,700 Utilities ($130 fixed) 620 Supervisors salary 2,600 Maintenance ($310 fixed) 520 Depreciation 850 Suppose it sells each birdbath for $22 Required 1 Calculate the unit contribution margin and contribution margin ratio for each birdbath sold (Round Variable cost per unit to 2 decimal places Enter all amounts as positive values ) Unit Contribution Margin per Birdbath Contribution Margin Ratio 2 Complete the contribution margin income statement assuming that Morning Dove produces and sells 2,400 units (Round your intermediate calculation to two decimal place )

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E5-3 Calculating Contribution Margin and Contribution Ratio, Preparing Contribution Margin Income Statement [LO 5-5] Morning Dove Company manufactures one model of birdbath, which is very

E5-3 Calculating Contribution Margin and Contribution Ratio, Preparing Contribution Margin Income Statement [LO 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 02,500 units, and monthly production costs for the production of 2,200 units follow. Morning Doves utilities and maintenance costs are mixed with the fixed components shown in parentheses.

Production Costs	Total Cost
Direct materials	$	1,500
Direct labor		6,700
Utilities ($130 fixed)		620
Supervisors salary		2,600
Maintenance ($310 fixed)		520
Depreciation		850

Suppose it sells each birdbath for $22. Required: 1. Calculate the unit contribution margin and contribution margin ratio for each birdbath sold. (Round Variable cost per unit to 2 decimal places. Enter all amounts as positive values.)


=	Unit Contribution Margin
		per Birdbath


=	Contribution Margin Ratio
		%

2. Complete the contribution margin income statement assuming that Morning Dove produces and sells 2,400 units. (Round your intermediate calculation to two decimal place.)