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 01,700 units, and monthly production costs for the production of 1,400 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		7,900
Utilities ($120 fixed)		640
Supervisors salary		3,300
Maintenance ($290 fixed)		530
Depreciation		750

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 1,600 units.

Calculate the unit contribution margin and contribution margin ratio for each birdbath sold. (Round Variable cost per unit to 2 decimal places. Round your contribution margin ratio to 2 decimal places. Enter all amounts as positive values.)

Sales price per unit		Variable Cost per Unit	=	Unit Contribution Margin
$28.00					per Birdbath
Unit Contribution Margin		Sales price per unit	=	Contribution Margin Ratio
					%

Complete the contribution margin income statement assuming that Morning Dove produces and sells 1,600 units. (Round your intermediate calculation to 2 decimal places.)

MORNING DOVE COMPANY
Contribution Margin Income Statement
Expected for 1,600 Units
Sales Revenue	$44,800
Variable Costs
Contribution Margin
Fixed Costs
Net Operating Income