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 51,000 to 91,000 units is given below:

Required:

1. Complete the above schedule of the company’s total costs and costs per unit.

2. Assume that the company produces and sells 81,000 units during the year at a selling price of $9.39 per unit. Prepare a contribution format income statement for the year.

Complete the above schedule of the company’s total costs and costs per unit. (Round the per unit variable cost and fixed cost to 2 decimal places.)

	Units Produced and Sold 51,000 71,000 91,000 Total costs: Variable costs $147,900 Fixed costs 390,000 Total costs $537,900 Cost per unit: Variable cost Fixed cost Total cost per unit

Assume that the company produces and sells 81,000 units during the year at a selling price of $9.39 per unit. Prepare a contribution format income statement for the year.

	Harris Company Contribution Format Income Statement

Answer 1

71000 91000 201 205900 390000 595900 263900 390000 653900 Question-1 51000 Total Cost Variable Cost 147900 Fixed cost 390000 Total Cost 537900 cost per unit Variable cost per unit 2.90 Fixed cost Per unit 7.65 Total cost per unit 10.55 Question -2 (for 81000 units) Harris Company Contribution Margin Income Statement 2.902.90 5.49 4.29 8.39 7.19 Sales Revenue (81000*9.39) Less: Variable Cost (81000*2.90) Contribution Margin Fixed cost Income From Operations 760590 234900 525690 390000 135690