Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following information applies to the questions displayed below.) Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all

image text in transcribed
image text in transcribed
The following information applies to the questions displayed below.) 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 0-1,500 units, and monthly production costs for the production of 500 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 ($100 Fixed) Supervisor's salary Maintenance ($280 fixed) Depreciation Total Cost $1,500 7.500 650 3,000 480 800 Suppose it sells each birdbath for $25 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 1.400 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 1,400 units. (Round your intermediate calculation to 2 decimal places MORNING DOVE COMPANY Contribution Margin Income Statement Expected for 1400 Units Contribution margin The following information applies to the questions displayed below! Morning Dove Company manufactures one model of birdbath, which is very popular, Moming Dove sells all unitsit produces each month. The relevant range is 0-1,500 units, and monthly production costs for the production of 500 units follow. Morning Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses. Production Costs Total cost Direct materials $1,500 Direct labor 9.500 Utilities ($100 fixed 650 Supervisor's salary 3.000 Maintenance (5280 fixed) 480 Depreciation 800 Suppose it sells each birdbath for $25 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 1400 units Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the unit contribution maroin and contribution margin ratio for each birdbath sold (Round Variable cost per unit to 2 decimal places. Enter all amounts as positive values Unit contribution margin per Birth Contribution margin to 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

Final Work On Internal Audit Internal Audit And Its Management

Authors: Silvia Mamani

1st Edition

6203099651, 978-6203099652

More Books

Students also viewed these Accounting questions

Question

f(-3)=1 f(x)=-3 This is tricky!! Th What x-value will give you an

Answered: 1 week ago

Question

=+d. Suppose that two typists are independently selected.

Answered: 1 week ago