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Tweety Company manufactures one model of birdbath, which is very popular. Tweety sells all units it produces each month. The relevant range is 02,100 units,
Tweety Company manufactures one model of birdbath, which is very popular. Tweety sells all units it produces each month. The relevant range is 02,100 units, and monthly production costs for the production of 1,700 units follow. Tweetys utilities and maintenance costs are mixed with the fixed components shown in parentheses. |
Production Costs | Amount | |
Direct materials | $ | 2,100 |
Direct labor | 8,100 | |
Utilities ($140 fixed) | 590 | |
Supervisors salary | 3,000 | |
Maintenance ($310 fixed) | 530 | |
Depreciation | 850 | |
|
Suppose it sells each birdbath for $22. |
Requirement 1: |
Calculate the unit contribution margin and contribution margin ratio for each birdbath sold. (Round your answers to 2 decimal places. Omit the "$" & "%" signs in your response.) |
Unit contribution margin | $ | ||
Contribution margin ratio | % |
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