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 01,900 units, and monthly production costs for the production of 1,500 units follow. Morning Doves utilities and maintenance costs are mixed with the fixed components shown in parentheses.

Production Costs	Total Cost
Direct materials	$	1,700
Direct labor		7,300
Utilities ($120 fixed)		560
Supervisors salary		3,200
Maintenance ($340 fixed)		550
Depreciation		700

Required:

1. Identify each cost as variable, fixed, or mixed, and express each cost as a rate per month or per unit (or combination thereof).

2. Determine the total fixed cost per month and the variable cost per unit for Morning Dove.

3. State Morning Doves linear cost equation for a production level of 01,900 units. Enter answer as an equation in the form of y = a + bx.

4. Calculate Morning Doves expected total cost if production increased to 1,700 units per month. Enter answer as an equation in the form of y = a + bx.

5. Suppose it sells each birdbath for $30. Calculate the unit contribution margin and contribution margin ratio for each birdbath sold.

6. Complete the contribution margin income statement assuming that Morning Dove produces and sells 1,700 units.