2. Complete the contribution margin income statement assuming that Morning Dove produces and sells 1,900 units. (Round your intermediate calculation to two decimal place.)MORNING DOVE COMPANYContribution Margin Income StatementExpected for 1,900 UnitsSales Revenue49,400$Variable Costs12,160$Contribution Margin37,240Fixed CostsNet Operating Income

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Asked Oct 1, 2019
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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 0–2,000 units, and monthly production costs for the production of 1,700 units follow. Morning Dove’s utilities and maintenance costs are mixed with the fixed components shown in parentheses.
 

Production Costs Total Cost
Direct materials $ 2,100
Direct labor   8,100
Utilities ($130 fixed)   590
Supervisor’s salary   2,800
Maintenance ($310 fixed)   530
Depreciation   750
 


Suppose it sells each birdbath for $26.

 

how do i find the amount of fixed costs with this information

2. Complete the contribution margin income statement assuming that Morning Dove produces and sells 1,900 units. (Round your intermediate calculation to two decimal place.)
MORNING DOVE COMPANY
Contribution Margin Income Statement
Expected for 1,900 Units
Sales Revenue
49,400
$
Variable Costs
12,160
$
Contribution Margin
37,240
Fixed Costs
Net Operating Income
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2. Complete the contribution margin income statement assuming that Morning Dove produces and sells 1,900 units. (Round your intermediate calculation to two decimal place.) MORNING DOVE COMPANY Contribution Margin Income Statement Expected for 1,900 Units Sales Revenue 49,400 $ Variable Costs 12,160 $ Contribution Margin 37,240 Fixed Costs Net Operating Income

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Expert Answer

Step 1

Fixed Cost: It is a cost which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed disregarding of increase or decrease in output. Fixed cost is generally incurred on fixed assets in long run.

Step 2

Calculate the total fixed c...

Amount ($)
Particulars
Utilities
$130
Supervisor's salary
Maintenance
2,800
310
Depreciation
750
$3,990
Total fixed cost
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Amount ($) Particulars Utilities $130 Supervisor's salary Maintenance 2,800 310 Depreciation 750 $3,990 Total fixed cost

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