Question

Harris Company manufactures and sells a single product. A partially completed schedule of the company's total costs and costs per unit over the relevant range of 52,000 to 92,000 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 82,000 units during the year at a selling price of $9.84 per unit. Prepare a contribution format income statement for the year. Complete this question by entering your answers in the tabs below Required 1Required 2 Complete 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 52,000 72,000 92,000 Total costs Variable costs 192,400 370,000 562,400 Fixed costs Total costs Cost per unit: Variable cost Fixed cost Total cost per unit Required 1 Required 2>

Answer 1

Part 1

	Units produced and sold
	52000	72000	92000
Total costs:
Variable costs	192400	266400	340400
Fixed costs	370000	370000	370000
Total costs	562400	636400	710400
Cost per unit :
Variable cost	3.70	3.70	3.70
Fixed cost	7.12	5.14	4.02
Total cost per unit	10.82	8.84	7.72

Variable cost per unit = 192400/52000 = 3.70

72000*3.70=266400

92000*3.70=340400

370000/52000= 7.12

370000/72000 =5.14

370000/92000 = 4.02

Part 2

Harris company

Contribution format income statement

Sales (82000*9.84)	806880
variable costs (82000*3.70)	(303400)
Contribution margin	503480
Fixed costs	(370000)
Operating income	133480