Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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 0-2,400 units, and monthly production costs for the production of 2,100 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 ($310 fixed) Depreciation Total Cost $ 2,700 7,300 570 3,300 530 850 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.) Sales Price Variable Cost per Unit = Unit Contribution Margin per Birdbath Unit Contribution Margin Sales Price = Contribution Margin Ratio 2. Complete the contribution margin income statement assuming that Morning Dove produces and sells 2,300 units. (Round your intermediate calculation to two decimal place.) MORNING DOVE COMPANY Contribution Margin Income Statement Expected for 2,300 Units Sales Revenue Variable Costs Contribution Margin Fixed Costs Net Operating Income

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit Of EPAs Fiscal 2013 And 2012 Consolidated Financial Statements

Authors: U.S. Environmental Protection Agency

1st Edition

1500696218, 978-1500696214

More Books

Students also viewed these Accounting questions