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 01,800 units, and monthly production costs for the production of 1,300 units follow. Morning Doves utilities and maintenance costs are mixed with the fixed components shown in parentheses.

Production Costs	Total Cost
Direct materials	$	2,700
Direct labor		7,100
Utilities ($110 fixed)		600
Supervisors salary		3,100
Maintenance ($320 fixed)		510
Depreciation		700

Suppose it sells each birdbath for $20.

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 1,500 units.