Muining Duve Companymuflactures one model of birdbath, which is very populs. Mor
ID: 2533693 • Letter: M
Question
Muining Duve Companymuflactures one model of birdbath, which is very populs. Morning Duve sell all urits il produces each month. The elevnae is 0-2,300 urits, andmthly preduion costs for the production uf 1,800 urits folow. Morring Duve's i mxed with the foed components shown in parenthescs. and mance csts ar Drect matenal Direct labcr UnItes (3100 fixed S1,500 7,500 80 Mainlenance (290 ied) Depredaton 480 Suppose it sells cach birdbath for $28 Required: 1. Colculate the unit cantrioutin margin and contribuin margin rotio for ach bidbath sold. (Round Variable cost per unit to 2 decimal placcs. Enter all amounts as positive values ales Frice arlab e Cost per Unlt r Birdbath Contreution Margin Rano 2. Complate the contribution margin inome statemant sssuming tatMming Dave produces and sels 2,000 units. Round your intermediate calculation to two decimal place) Contribution Margin Income Statement Expected for 2.000 Units Contributon MarpinExplanation / Answer
Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount Sales price per unit 28.00 Less Variable Expenses per unit : Direct materials per unit = 1900/1800 1.06 Direct Labour per unit = 7600/1800 4.22 Utilities = 480/1800 0.27 Maintenance = 280 / 1800 0.16 Variable expense per unit 5.70 Contribution Margin per unit 22.30 Contribution margin ratio = 22.30/28 79.64% Sales 56,000.00 Less Variable expenses Direct materials 2,111.11 Direct Labour 8,444.44 Utilities 533.33 Maintenance 311.11 Total variable cost 11,400.00 Contribution margin 44,600.00 Fixed expenses : Utilities 480.00 Supervisors salary 2,700.00 Maintenance 200.00 Depreciation 750.00 Total fixed costs 4,130.00 Income = 44600 - 4130 40,470.00
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