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 $1,800$ 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 $ $1,900$

Direct labor $8,100$

Utilities $($$$110$ fixed$)560$

Supervisors salary $2,800$

Maintenance $($$$340$ fixed$)490$

Depreciation $850$

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

Suppose it sells each birdbath for $$20.$

Required:

Calculate the unit contribution margin and contribution margin ratio for each birdbath sold.

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