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 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 $10.23 per unit. Prepare a contribution format income statement for the year.

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 $10.23 per unit. Prepare a contribution format income statement for the year.

еск my work mode: n's snows what is correct or incorrect for the work you have completed so far. It does not in Answer is not complete 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 uni variable cost and fixed cost to 2 decimal places.) Units Produced and Sold 59,000 79,000 99,000 Total costs: Variable costs 171,100 229,100287,100 500,000 500,000 671,100 729,100 $ 787,100 Fixed costs 500,000 Total costs Cost per unit 2.90 8.47 11.37 $ 2.90 9.23 K Required 1 Variable cost 2.90 6.33 5.05 7.95 Fixed cost Total cost per unit Required 2>

Answer 1

Solution 1:

Schedule of Total cost and cost per unit
Particulars	Units produced and sold
	59000	79000	99000
Total costs:
Variable costs	$171,100.00	$229,100.00	$287,100.00
Fixed costs	$500,000.00	$500,000.00	$500,000.00
Total costs	$671,100.00	$729,100.00	$787,100.00
Cost per unit:
Variable cost	$2.90	$2.90	$2.90
Fixed cost	$8.47	$6.33	$5.05
Total cost per unit	$11.37	$9.23	$7.95

Solution 2:

Harris Company
Contribution format income statement
Particulars	Amount
Sales (89000*$10.23)	$910,470.00
Variable expenses (89000*$2.90)	$258,100.00
Contribution margin	$652,370.00
Fixed costs	$500,000.00
Net Operating Income	$152,370.00