Question

2. Assume that the company produces and sells 97,000 units during the year at a selling price of $9.97 per unit. Prepare a contribution format income statement for the year. Complete this question by entering your answers in the tabs below. points Required 1 Required 2 eBook Print Assume that the company produces and sells 97,000 units during the year at a selling price of $9.97 per unit. Prepare a contribution format income statement for the year. References Harris Company Contribution Format Income Statement Required 1 Required 2 >

Answer 1

Answer of the company's total costs and costs Completion of A per unit as schedule given Total costs includes variable costs and fixed costs. Variable costs are dependent on level of production activity. They are changed as per proluçhon changes. Eixed costs are remqio fixed ovevº parlod of time. They are not dependent on level of I production activity Company also cakellate cost per yout of both variable and fixed costs _ و ارم) / عاه[ey unit : M7 ۴ / ۸ed کناری) Total Number of units Harels company of cost per unit Schedule Corts - units produced and sold units 1 87000 unia 67000 I 107000 units Total costs Variable cost _254600 330600 (87000 $3.8) 406600 (107000 X 3.8) Fixed cost 40000 450000 450000 Total costs 704600 780600 856600

I Cort per unit Variable cast 3.8 3.8. 3.8 ($254600/67000) (#330600/87000)|($406600/107003 fixed Git 6.72 5.17 10450000/ 67000) 1140000 787003) (450000/107000) Cast Dev Unit (Total) 10.52 8.97 8.01 2 Contribution format Incane statement Copbybution format incane statement is the income statement Where the sales get reduced from variable costs and then fixed corts - Hanis Company Canbyibution format Income statement for the year ended 200X Amt. (5) Partiallars Sales 697000 units X $9.97) Variable Cost (97000 units X $ 3.80) 967090 |(368600) Golvibution_Majia 1 -. Fixed costs 598490 (45000) Net Operating Income 148490