Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

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

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 0-1,800 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 Direct materials Direct labor Utilities (5130 fixed) Supervisor's salary Total Cost $2,500 6,700 560 3,200 Maintenance ($320 Fixed) 460 Depreciation 000 Suppose it sells each birdbath for $20 Required: 1. Calculate the unit contribution margin ond contribution margin ratio for each birdbath sold 2. Complete the contribution margin income statement assuming thet Morning Dove produces and sells 1,500 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 1,500 units (Round your Intermediate calculation to 2 decimal places.) MORNING DOVE COMPANY Contribution Margin income statement Expected for 1,500 Units: Contribution Margin Net Operating Income Required information Morning Dove Company manufactures one model of birdbath, which is very popular Moming Dove sells all units it produces each month. The relevant range is 0-1,800 units, and monthly production costs for the production of 1,300 units follow. Morning Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses. Production Costs Direct materials Direct labor Total Cost $2,500 6,700 Utilities (5130 fixed) 560 3,200 Maintenance ($320 fixed) Depreciation 460 800 Supervisor's salary 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 1,500 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 Bedbath Contribution Margin Ratio Required Required 2 >

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_2

Step: 3

blur-text-image_3

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

More Books

Students explore these related Accounting questions