! Required information 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 0-2,000 units, and monthly production costs for the production of 1,600 units follow. Morning Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses. Production Costs Direct materials Direct labor Utilities ($120 fixed) Supervisor's salary Maintenance ($280 fixed) Depreciation Total Cost $ 2,900 7,500 640 3,200 500 800 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). 2. Determine the total fixed cost per month and the variable cost per unit for Morning Dove. 3. State Morning Dove's linear cost equation for a production level of 0-2,000 units. Enter answer as an equation in the form of y = a + bx. 4. Calculate Morning Dove's expected total cost if production increased to 1,800 units per month. Enter answer as an equation in the form of y = a + bx. Required 1 Required 2 Required 3 Required 4 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 2 decimal places.) Production Costs Behavior Rate Direct Materials per Unit per Month Direct labor per Unit per Month Utilities per Unit per Month Supervisor's Salary per Unit per Month Maintenance per Unit per Month Depreciation per Unit per Month Required 1 Required 2 Required 3 Required 4 Determine the total fixed cost per month and the variable cost per unit for Morning Dove. (Round your intermediate calculations and variable cost per unit to 2 decimal places.) Total Variable Cost per Unit Total Fixed Cost per Month Required 1 Required 2 Required 3 Required 4 State Morning Dove's linear cost equation for a production level of 0-2,000 units. Enter answer as an equation in the form of y = a + bx. (Round your intermediate calculations and variable cost per unit to 2 decimal places.) Total Cost Required 1 Required 2 Required 3 Required 4 Calculate Morning Dove's expected total cost if production increased to 1,800 units per month. Enter answer as an equation in the form of y = a + bx. (Round intermediate calculations and variable cost per unit to 2 decimal places.) a + b X y $ 0 Suppose it sells each birdbath for $20. 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 1,800 units. 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 % Required 1 Required 2 Complete the contribution margin income statement assuming that Morning Dove produces and sells 1,800 units. (Round your intermediate calculation to 2 decimal places.) MORNING DOVE COMPANY Contribution Margin Income Statement Expected for 1,800 Units Contribution Margin Net Operating Income
