Question
Nana Incorporated manufactures one model of birdbaths for $30 each. Nana sells all units produced every month. The relevant range is 0-1,800 units. The monthly
Nana Incorporated manufactures one model of birdbaths for $30 each. Nana sells all units produced every month. The relevant range is 0-1,800 units. The monthly production costs for 1,400 birdbaths is as follows. Note: Utilities and Maintenance costs are mixed costs with the fixed portion shown in parentheses. Please calculate the Contribution margin (CM) per unit, CM Ratio, and CM Income Statement.
Production costs | Total cost |
Direct materials | $1,700 |
Direct labor | $6,500 |
Utilities ($110 fixed) | $620 |
Supervisors salary | $2,900 |
Maintenance ($340 fixed) | $470 |
Depreciation | $900 |
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