E5-3 Calculating Contribution Margin and Contribution Ratio, Preparing Contribution Margin Income Statement [LO 5-5]

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 02,200 units, and monthly production costs for the production of 1,800 units follow. Morning Doves 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 ($150 fixed)		610
Supervisors salary		3,300
Maintenance ($310 fixed)		480
Depreciation		850

Suppose it sells each birdbath for $30. Required: 1. Calculate the unit contribution margin and contribution margin ratio for each birdbath sold. (Round Variable cost per unit to 2 decimal places. Enter all amounts as positive values.) 2. Complete the contribution margin income statement assuming that Morning Dove produces and sells 2,000 units. (Round your intermediate calculation to two decimal place.)