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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 01,500 units, and monthly production costs for the production of 1,200 units follow. Morning Doves utilities and maintenance costs are mixed with the fixed components shown in parentheses.

Production Costs	Total Cost
Direct materials	$	3,100
Direct labor		6,700
Utilities ($110 fixed)		630
Supervisors salary		3,100
Maintenance ($290 fixed)		550
Depreciation		850

E5-5 (Algo) Calculating Contribution Margin and Contribution Margin Ratio, Preparing Contribution Margin Income Statement [LO 5-5]

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 unit

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.)

Complete the contribution margin income statement assuming that Morning Dove produces and sells 1,400 units. (Round your intermediate calculation to 2 decimal places.)

Unit Contribution Margin per Birdbath Unit Contribution Margin l Sales price per unit Contribution Margin Ratio MORNING DOVE COMPANY Contribution Margin Income Statement Expected for 1,400 Units Contribution Margin Net Operating Income

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