Question

Harris Company manufactures and sells a single product.

Required:

1. A partially completed schedule of the company’s total and per unit costs over the relevant range of 63,000 to 103,000 units produced and sold annually is given below: Complete the schedule of the company’s total and unit costs. Round the variable cost and fixed cost to 2 decimal places.)

Units Produced and Sold 63,000 83,000 103,000 Total costs: $ Variable costs 176,400 Fixed costs 390,000 $ Total costs 566,400 Cost unit: per Variable cost Fixed cost Total cost unit per

2. Assume that the company produces and sells 93,000 units during the year at a selling price of $8.50 per unit. Prepare a contribution format income statement for the year. (Do not round intermediate calculations.

Answer 1

Units Produced and Sold 63000 83000 103000 176400 232400 288400 390000 390000 390000 566400622400678400| Total Costs: Variables costs Fixed costs Total costs Cost per unit: Variable cost Fixed costs Total Cost per unit 2.80 6.19 8.99) 2.80 4.70 7.500 2.80 3.79 6.591 Harris Company Contribution Format Income statement Sales 790500 Variable expenses 260400 Contribution margin 530100 Fixed expenses 390000 Net operating income 140100