User Account

All Pages

Question - Calculating Contribution Margin

Assignment Help Accounting Basics
Reference no: EM132569137

Question - Calculating Contribution Margin and Contribution Margin Ratio, Preparing Contribution Margin Income Statement

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 $2,500

Direct labor 7,900

Utilities ($120 fixed) 610

Supervisor's salary 2,900

Maintenance ($310 fixed) 480

Depreciation 900

Suppose it sells each birdbath for $22.

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 1,600 units.

Reference no: EM132569137

Questions Cloud

Explain how the ups inc : Explain how the UPS Inc. uses social media as a recruiting tool.
Social media as a recruiting tool : Explain how the Dell company uses social media as a recruiting tool.
Implementers of the curriculum : How would you apply the following strategies to promote the effective implementation of the curriculum:
How the control environment and general it control : How the control environment and general IT (information technology) controls are related. and how it can impact of a both strong and weak control environment
Question - Calculating Contribution Margin : Question - Calculating Contribution Margin and Contribution Margin Ratio, Preparing Contribution Margin Income Statement
Explain three examples of three employers : Explain three examples of three employers who use social media as a recruiting tool.
What was the cost of direct materials used in january : What amount of work in process inventory was transferred out to finished goods during January? What was the cost of direct materials used in January?
Interviewing a patient from the arab culture : ?Discuss some differences, background, and belief systems that a medical assistant may encounter while interviewing
How to compute the direct labor efficiency variance : Compute the direct labor efficiency variance? During the month 2,000 units were produced and 5,800 hours were used at a cost of $14.50 per hour.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd