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 02,100 units, and monthly production costs for the production of 1,800 units follow. Morning Doves utilities and maintenance costs are mixed with the fixed components shown in parentheses.

Production Costs	Total cost
Direct materials	1,700
Direct labor	7,100
Utilities ($120 fixed)	630
Supervisors salary	3,100
Maintenance ($330 fixed)	470
Depreciation	750

Suppose it sells each birdbath for $20.

Required:

1

Calculate the unit contribution margin and contribution margin ratio for each birdbath sold. (Round your answers to 2 decimal places.)

			=	unit contribution margin
					per birdbath
			=	contribution margin ratio
					%

2.

Complete the contribution margin income statement assuming that Morning Dove produces and sells 2,000 units. (Round your intermediate calculations to 2 decimal places.)

Morning Dove Company
Contribution Margin Income Statement
Extpected for 2000 Units
Contribution Margin
Net Operating Income