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 01,600 units, and monthly production costs for the production of 1,100 units follow. Morning Doves utilities and maintenance costs are mixed with the fixed components shown in parentheses. Production Costs Total Cost Direct materials $ 2,100 Direct labor 6,500 Utilities ($140 fixed) 590 Supervisors salary 2,600 Maintenance ($340 fixed) 480 Depreciation 750 Suppose it sells each birdbath for $26.

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 1,300 units.