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Business, 12.04.2021 05:10 mickecia1

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 0–1,900 units, and monthly production costs for the production of 1,500 units follow. Morning Dove’s utilities and maintenance costs are mixed with the fixed components shown in parentheses. Production Costs Total Cost Direct materials $ 2,500 Direct labor 6,900 Utilities ($110 fixed) 570 Supervisor’s salary 2,800 Maintenance ($280 fixed) 550 Depreciation 900 Suppose it sells each birdbath for $24. 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 1,700 units.

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