Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information E5-4 and E5-5 [LO 5-1,5-5) Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it

image text in transcribed
image text in transcribed
Required information E5-4 and E5-5 [LO 5-1,5-5) 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 0-1,800 units, and monthly production costs for the production of 1,400 units follow. Morning Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses Production costs Total cost Direct materials $2,100 Direct labor 7.100 Utilities (5120 fixed) 580 Supervisor's salary 2.900 Maintenance ($320 fixed) 510 Depreciation 800 E5-5 (Algo) Calculating Contribution Margin and Contribution Margin Ratio, Preparing Contribution Margin Income Statement (LO 5-5) 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 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.) Unit Contribution Margin per Birdbath Contribution Margin Ratio % Droduction Costs Direct materials Direct labor Utilities ($120 fixed) Supervisor's salary Maintenance ($320 fixed) Depreciation Total Cost $2,100 7,100 580 2,900 510 800 E5-5 (Algo) Calculating Contribution Margin and Contribution Margin Ratio, Preparing Contribution Margin Income Statement [LO 5-5) 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 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 Contribution Margin Net Operating Income

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting, 1, (6 Months)

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

14th Edition

1337270814, 9781337270816

More Books

Students also viewed these Accounting questions

Question

Define CASE, CASE tools, and a CASE environment.

Answered: 1 week ago

Question

3. Applying: Using a general concept to solve a particular problem.

Answered: 1 week ago

Question

Summarise the scope of HRM and the key HRM functions

Answered: 1 week ago