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 0-1,500 units, and monthly production costs for the production of 1,200 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 ($250 fixed) Depreciation C Total Cost $ 2,700 8,100 Suppose it sells each birdbath for $26. Required: 580 3,200 530 750 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.
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 0-1,500 units, and monthly production costs for the production of 1,200 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 ($250 fixed) Depreciation C Total Cost $ 2,700 8,100 Suppose it sells each birdbath for $26. Required: 580 3,200 530 750 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.
Managerial Accounting: The Cornerstone of Business Decision-Making
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Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
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Problem 64E: Use the following information for Exercises 9-63 and 9-64: Palladium Inc. produces a variety of...
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![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 0-1,500 units, and monthly production costs for the production of 1,200 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 ($250 fixed)
Depreciation
Total Cost
$ 2,700
8,100
Suppose it sells each birdbath for $26.
Required:
580
3,200
530
750
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
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.)
Required 1
Unit Contribution Margin
Contribution Margin Ratio
Required 2 >
per Birdbath
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F844fb79c-8c8d-4b0b-a54b-24c2875f4bd3%2Fb18bd408-6a25-41b6-8b9d-879a6fb5740c%2F787278a_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 0-1,500 units, and monthly production costs for the production of 1,200 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 ($250 fixed)
Depreciation
Total Cost
$ 2,700
8,100
Suppose it sells each birdbath for $26.
Required:
580
3,200
530
750
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
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.)
Required 1
Unit Contribution Margin
Contribution Margin Ratio
Required 2 >
per Birdbath
%
![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 1,400 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 1,400 Units
Contribution Margin
Net Operating Income
< Required 1
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F844fb79c-8c8d-4b0b-a54b-24c2875f4bd3%2Fb18bd408-6a25-41b6-8b9d-879a6fb5740c%2Ff5hhzk_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 1,400 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 1,400 Units
Contribution Margin
Net Operating Income
< Required 1
Required 2 >
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