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 0-1,700 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 raterials Direct labor Utilities (5108 fixed) Supervisor's salary Maintenance ($308 fixed) Depreciation Total Cost $2,708 7,100 648 2,908 530 800 Suppose It sells each birdbath for $30. 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.
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 0-1,700 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 raterials Direct labor Utilities (5108 fixed) Supervisor's salary Maintenance ($308 fixed) Depreciation Total Cost $2,708 7,100 648 2,908 530 800 Suppose It sells each birdbath for $30. 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.
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2PB: A company manufactures and sells blades that are used in riding lawnmowers. The 18-inch blade sells...
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