Harris Company manufactures and sells a sinle product. A partially completed schedule of the company's total costs and costs per unit over the relevant range of 59,000 to 99,000 units is given below:
Required:
1.Complete the schedule of the company's total costs and costs per unit as given in the relevant tab below.
2.Assume that the company produces and sells 89,000 units during the year at a selling price of $8.53 per unit. Prepare a contribution format income statement for the year.
compelte the schedule of the company's total costs and costs per unit as given in the relevant tab below.(round the per unit variable cost and fixed cost to 2 decimal places)
Units Produced and Sold 59,000 79,000 99,000
Total costs:
Variable cost $182,900
Fixed cost 350,000
Total costs $532,900
Solution 1:
Units produced and sold | 59000 | 79000 | 99000 |
Total costs: | |||
Variable cost | $182,900.00 | $244,900.00 | $306,900.00 |
Fixed cost | $350,000.00 | $350,000.00 | $350,000.00 |
Total costs | $532,900.00 | $594,900.00 | $656,900.00 |
Variable cost per unit | $3.10 | $3.10 | $3.10 |
Fixed cost per unit | $5.93 | $4.43 | $3.54 |
Total cost per unit | $9.03 | $7.53 | $6.64 |
solution 2:
Contribution format Income Statement | |
Particulars | Amount |
Sales | $759,170.00 |
Variable costs | $275,900.00 |
Contribution margin | $483,270.00 |
Fixed costs | $350,000.00 |
Net operating income | $133,270.00 |
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