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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 1,100 units follow. Morning Doves utilities and maintenance costs are mixed with the fixed components shown in parentheses.
Required information 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 0-1,500 units, and monthly production costs for the production of 1,100 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 ($120 fixed) Supervisor's salary Maintenance ($340 fixed) Depreciation Total Cost $ 2,700 6,500 590 2,600 510 800 Suppose it sells each birdbath for $28. Required: 1. Calculate the unit contribution margin and contribution margin ratio for each birdbath sold. 2. Complete the contribution margin income statement assuming that Morning Dove produces and sells 1,300 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the contribution margin income statement assuming that Morning Dove produces and sells 1,300 units. (Round your intermediate calculation to 2 decimal places.) MORNING DOVE COMPANY Contribution Margin Income Statement Expected for 1,300 Units Sales Revenue $ 36,400 Variable Costs Contribution Margin Net Operating IncomeStep by Step Solution
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