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PART1 PART 2 Moming Dove Campany manufactures ane madel of blrdbath, which is very popular. Morning Dove sels all unts it praduces cach manth. The
PART1PART 2
Moming Dove Campany manufactures ane madel of blrdbath, which is very popular. Morning Dove sels all unts it praduces cach manth. The ralavant range is 0-250aI units, and manthly production casts tar the production af 2,000 units follaw. Morning Dove's utilities and maintanance cosls are mixad wth the fxed components shown in parantheses. Tatal Dre 10xna 7,100 3,100 Derrecition a00 Sunnose It sals eech birdbeth for $26 Required: 1. Celculate e unit contibution margin and contribution margin natio for each birdbeth soid (Round Variable cost per unit to 2 decimal places. Enter all amounts as positive values.) Unit Contr butlon Marnin Rirboth Margin 2. Complete e contribution mamin income statement essuming that Moning Dove producas an 1 sels 2.200 urits. (Round your intermediate calculation to two decimal place.) Contritution Marnin insome Expacted for 2,200 Units Contr burtion Margin Net Operating Incoma 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 0-1,700 units, and monthly production costs for the production of 1,300 units follow. Morning Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses. Production Costs ials Total Cost $ 6.700 Direct labor Utilities ($110 fixed) Supervisor's salary Maintenance ($320 fixed) Depreciation 650 2,900 480 850 Required: 1. Identify each cost as variable, fixed, or mixed, and express each cost as a rate per month or per unit (or combination thereof). (Round your per unit value to places.) decimal Production Behavior Rate sts Direct Materials per lUnit per Month per Month per Month per Month per Month per Month per Direct labor Unit per Utilities Unit Supervisor's Salary per Unit per Maintenance Unit per Unit Depreciation 2. Determine the total fixed cost per month and the variable cost per unit for Morning Dove. (Round your variable cost per unit to 2 decimal places.) Total Variable Cost per Unit To per Month Cost 3. State Morning Dove's linear cost equation for a production level of 0-1,700 units. Enter answer as an equation in the form of y abx. (Round your variable cost per unit to decimal places.) Total X Cost = the form of y 4. Calculate Morning Dove's expected total cost if production increased to 1,500 units per month. Enter answer as an equation per unit to 2 decimal places.) a + bx. (Round Variable cost X bStep by Step Solution
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