Question

unit over the relevant range of 53,000 to 93,000 units is given below: Che units 0.00 S 0.00 S 0.00 Next>

Answer 1

Required 1::

	Units Produced and Sold
	53000	73000	93000
Total Costs
Variable Costs	$ 1,64,300	$ 2,26,300	$ 2,88,300
Fixed Costs	$ 3,60,000	$ 3,60,000	$ 3,60,000
Total Costs	$ 5,24,300	$ 5,86,300	$ 6,48,300
Cost per unit
Variable Cost	$ 3.10	$ 3.10	$ 3.10
Fixed Cost	$ 6.79	$ 4.93	$ 3.87
Total Cost per unit	$ 9.89	$ 8.03	$ 6.97

Required 2:

Harris Company
Contribution Format Income Statement
Sales(83000 units* $9.03 per unit)	$ 7,49,490
Less: Variable Cost(83000units*$3.10 per unit)	($ 2,57,300)
Contribution	$ 4,92,190
Less: Fixed Costs	($ 3,60,000)
Net Income/ Profit	$ 1,32,190