116 points Moming Dove Company manufactures one model of birdbath, which is mont

Question

116 points Moming Dove Company manufactures one model of birdbath, which is monthly production costs for the production of 1,700 units tolow Moming Dove's utilities and maintenance osts are mixed with the fed components shown in very popular. Moming Dove sels all units i produces each month. The relevant range is 0-2,100 units, and Direct labor ,700 ($ 140 fed) Maintenance($330 fxed Suppose it sellis each bindbath for $26 akulate tre unit otrbuke, marpn ? d adon "wgr, fato each birt ath Sold(Round Viniable cost per unit to 2 decimal places. Ener al amounts as positive N M command option

Explanation / Answer

For 1700 Units Production Costs Total Cost Fixed Variable Direct materials 3100           1.82 Variable Direct labor 6700           3.94 Variable Utilities ($140 fixed) +$500 640 140           0.29 Mixed Supervisor’s salary 3000 3000 Fixed Maintenance ($330 fixed) 460 330           0.08 Mixed Depreciation 700 700 Fixed Total 14600 4170           6.14 Y = 4170 + 6.14(X), here X = # of units, Y = Total Cost 1 Sales price per unit - Variable cost per unit = Units Contribution Margin 26 - 6.14 = 19.86 per birdbath Contribution margin per unit ÷ Sales price per unit = Contribution margin ratio 6.14 ÷ 26 = 23.62% 2 MORNING DOVE COMPANY Contribution Margin Income Statement Expected for 1,900 units Sales Revenue $        49,400 (1900 x 26) Less: Variable Cost            11,666 (6.14 x 1900) Contribution margin            37,734 Less: Fixed Cost              4,170 Net Operating Income $        33,564

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