Morning Dove Company owner Slyvester believes that he can sell 2000 birdbaths during the a net opemonth of April and has predicted a net operating income of $6820 as shown in the following contribution margin statement.

Production Cost	Total Cost
Direct Material	1,500
Direct Labor	7500
Utilities( $100 fixed)	650
Supervisiors Salary	3000
Maintenence( $280 fixed)	480
Depreciation	800

MORNING DOVE COMPANY Contribution Margin Income Statement Expected for $2,000 units
Sales Revenue ( $2,000x$ 25.00) 50,000-39,000=11,000-4180=6820 Less Variable cost ( 2,000x$ 19.50) Contribution Margin( 2,000x5.50) Less Fixed Cost Net operating cost

1. Explain to Sylvester why his prediction is incorrect . Be specific about hisincorrect assumption and give him as much detail as possible about what the accurate contribution margin statement would show