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 1,600 units follow. Morning Doves utilities and maintenance costs are mixed with the fixed components shown in parentheses.

Production Costs	Total Cost
Direct materials	$	2,500
Direct labor		6,700
Utilities ($140 fixed)		580
Supervisors salary		3,200
Maintenance ($330 fixed)		490
Depreciation		900

E5-5 (Algo) Calculating Contribution Margin and Contribution Margin Ratio, Preparing Contribution Margin Income Statement [LO 5-5]

Suppose it sells each birdbath for $24.

Required 1 Required 2 Calculate the unit contribution margin and contribution margin ratio for each birdbath sold. (Round Variable cost per unit to decimal places. Round your contribution margin ratio to 2 decimal places. Enter all amounts as positive values.) Profit Labor Cost per Unit Unit Contribution Margin per Birdbath Sales Price Profit Contribution Margin Ratio % MORNING DOVE COMPANY Contribution Margin Income Statement Expected for 1,800 Units Contribution Margin Net Operating Income