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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

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 01,500 units, and monthly production costs for the production of 500 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 7,500
Utilities ($100 fixed) 650
Supervisors salary 3,000
Maintenance ($280 fixed) 480
Depreciation 800

Suppose it sells each birdbath for $25.

Required:
1.

Calculate the unit contribution margin and contribution margin ratio for each birdbath sold. (Round your answers to 2 decimal places.)

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