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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 to 1,700 units, and monthly production costs for the production of 1,300
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 ($120 fixed)
Supervisor's salary
Maintenance ($330 fixed)
Depreciation
Total Cost
$ 2,900
7,500
570
3,100
470
800
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 1,500 units.
? Answer is not complete.
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 1,500 units.
Morning Dove Company
Contribution Margin income Statement
Expected for 1,500 Units
Sales revenue
Variable costs
$ 39,000
12,675
Contribution margin
$ 26,325
Fixed costs
4,350
Net operating income
$21.975
