Question
Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range
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 to 1,600 units, and monthly production costs for the production of 1,200 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 ($250 fixed) Depreciation Total Cost $ 2,500 6,700 580 3,400 470 700 Complete the contribution margin income statement assuming that Morning Dove produces and sells 1,400 units. Morning Dove Company Contribution Margin Income Statement Expected for 1,400 Units Sales revenue Variable costs Fixed costs Contribution margin Fixed costs Gross margin Fixed costs Net operating income
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