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 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 81,000 units during the year at a selling price of $8.91 per unit. Prepare a contribution format income statement for the year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the schedule of the company's total costs and costs per unit as given in the relevant tab below. (Round the per unit varlable cost and fixed cost to 2 decimal places.) Units Produced and Sold 51,000 71,000 91,000 Total costs: Variable costs 2$ 173,400 Fixed costs 320,000 Total costs 493,400 $ Cost per unit: Variable cost Fixed cost Total cost per unit 0.00 $ %24 0.00 0.00

Answer 1

Units Produced and sold. Particulars. 51,000 91,000 760oo. Total cost $ 173,400 $241,400 $309,400 variable cost fined cost 320,000 320,000 320,000 Total cost $493,400 $561, 400 $629,400 cost per unit ( 173,400/51,000] $3.40 $3.40 $3.40 variable cost fined cost 6.28 (320,000/51000] 19.68 4.51 3.52 [320000/71000] (320,000.00 ] $7.91 $6.92 2) contribution statement @ $1,000 units. Harris company. contribution format Income statement Particulars Amount Sales Revenue (81,000x $8.91]. $721,710. less, variable cost ( 81,000 * $3.45 275,400 Contribution margin $ 446,310. $320,000 cessi- tixed cost & 126,310 Net income.

Variable cost per unit remains constant at all level of units.

Fixed cost per unit varies according to the level of production.