Understanding Cost Behavior and Implications of Relevant Range Tweety Company’s owner, Sylvester, believes that he can sell 2,000 birdbaths during the month of April and has predicted a contribution...

Tweety Company’s owner, Sylvester, believes that he can sell 2,000 birdbaths during the month of April and has predicted a contribution margin income of $16,320 as shown in the following contribution margin statement:

Required:

Explain to Sylvester why his prediction is incorrect. Be specific about his incorrect assumptions

and give him as much detail as possible about what the accurate contribution margin statement would show.