Question

In: Accounting

Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all...

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 0–1,800 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 Total Cost
Direct materials $ 2,700
Direct labor 7,100
Utilities ($110 fixed) 600
Supervisor’s salary 3,100
Maintenance ($320 fixed) 510
Depreciation 700

Suppose it sells each birdbath for $20.

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.

Solutions

Expert Solution

ekkarill92 answered 2 months ago
Next > < Previous

Related Solutions

Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all...
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 0–1,800 units, and monthly production costs for the production of 1,400 units follow. Morning Dove’s utilities and maintenance costs are mixed with the fixed components shown in parentheses.   Production Costs Total Cost Direct materials $ 2,900 Direct labor 7,100 Utilities ($110 fixed) 570 Supervisor’s salary 2,600 Maintenance ($280 fixed) 500 Depreciation 900 Suppose it sells...
Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all...
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 0–2,300 units, and monthly production costs for the production of 1,900 units follow. Morning Dove’s utilities and maintenance costs are mixed with the fixed components shown in parentheses. Production Costs Total Cost Direct materials $ 3,100 Direct labor 7,500 Utilities ($130 fixed) 590 Supervisor’s salary 2,800 Maintenance ($330 fixed) 480 Depreciation 700 Suppose it sells...
Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all...
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 1,600 units follow. Morning Dove’s utilities and maintenance costs are mixed with the fixed components shown in parentheses. Production Costs Total Cost Direct materials $ 1,500 Direct labor 7,300 Utilities ($150 fixed) 560 Supervisor’s salary 3,400 Maintenance ($300 fixed) 540 Depreciation 750 Suppose it sells...
Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all...
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 0–1,600 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 Total Cost Direct materials $ 3,100 Direct labor 7,100 Utilities ($130 fixed) 590 Supervisor’s salary 3,500 Maintenance ($310 fixed) 540 Depreciation 850 Required: 1. Identify...
E5-2 Determining Cost Behavior and Calculating Expected Cost [LO 5-1] Morning Dove Company manufactures one model...
E5-2 Determining Cost Behavior and Calculating Expected Cost [LO 5-1] 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 Total Cost Direct materials $ 1,900 Direct labor 7,300 Utilities ($130 fixed) 550 Supervisor’s salary...
Garfield Company manufactures a popular brand of dog repellant known as DogGone It, which it sells...
Garfield Company manufactures a popular brand of dog repellant known as DogGone It, which it sells in gallon-size bottles with a spray attachment. The majority of Garfield’s business comes from orders placed by homeowners who are trying to keep neighborhood dogs out of their yards. Garfield’s operating information for the first six months of the year follows: Month Number of Bottles Sold Operating Cost January 1,060 $ 10,780 February 1,410 15,730 March 1,790 15,990 April 2,500 19,530 May 3,490 27,740...
Garfield Company manufactures a popular brand of dog repellant known as DogGone It, which it sells...
Garfield Company manufactures a popular brand of dog repellant known as DogGone It, which it sells in gallon-size bottles with a spray attachment. The majority of Garfield’s business comes from orders placed by homeowners who are trying to keep neighborhood dogs out of their yards. Garfield’s operating information for the first six months of the year follows: Month Number of Bottles Sold Operating Cost January 1,060 $ 10,780 February 1,410 15,730 March 1,790 15,990 April 2,500 19,530 May 3,490 27,740...
Paul's Medical Equipment Company manufactures hospital beds. Its most popular model, Deluxe, sells for $5,000. It...
Paul's Medical Equipment Company manufactures hospital beds. Its most popular model, Deluxe, sells for $5,000. It has variable costs totaling $2,800 and fixed costs of $1,000 per unit, based on an average production run of 5,000 units. It normally has four production runs a year, with $500,000 in setup costs each time. Plant capacity can handle up to six runs a year for a total of 30,000 beds. A competitor is introducing a new hospital bed similar to Deluxe that...
A company that manufactures and sells consumer video cameras sells two versions of their popular hard...
A company that manufactures and sells consumer video cameras sells two versions of their popular hard disk​ camera, a basic camera for ​$500​, and a deluxe version for ​$1200. About 55​% of customers select the basic camera. Of​ those, 30​% purchase the extended warranty for an additional ​$100. Of the people who buy the deluxe​ version, 50​% purchase the extended warranty. Complete parts a through d below. ​a) Sketch the probability tree for total purchases. Warranty 0.3 Basic and Warranty...
2. Blue Nile's Medical Equipment Company manufactures hospital beds. Its most popular model, Deluxe, sells for...
2. Blue Nile's Medical Equipment Company manufactures hospital beds. Its most popular model, Deluxe, sells for $5,000. It has variable costs totaling $2,800 and fixed costs of $1,000 per unit, based on an average production run of 5,000 units. It normally has four production runs a year, with $400,000 in setup costs each time. Plant capacity can handle up to six runs a year for a total of 30,000 beds. A competitor is introducing a new hospital bed similar to...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT