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 66,000 to 106,000 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 96,000 units during the year at a selling price of $8.07 per unit. Prepare a contribution format income statement for the year. Complete this question by entering your answers in the tabs below. Required 1 Required 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 66,000 86,000 106,000 Total costs: Variable costs Fixed costs 198,000 350,000 548,000 Total costs Cost per unit Variable cost Fixed cost

Answer 1

Fixed costs in total do not change within the relevant range while variable cost per unit remains same
Units	66,000	86,000	106,000
Total costs:
Variable costs	198,000	258,000	318,000
Fixed costs	350,000	350,000	350,000
Total costs	548,000	608,000	668,000
Cost per Unit:
Variable cost	3.00	3.00	3.00
Fixed cost	5.30	4.07	3.30
2.Contribution format Income Statement
Sales	774,720
Variable expenses	288,000
contribution margin	486,720
fixed expenses	350,000
net operating income	136,720