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 $7.83 per unit. Prepare a contribution format income statement for the year Complete this question by entering your answers in the tabs below Required1Required2 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 51,000 71,000 91,000 Total costs Variable cost 132,600 300,000 432,600 S Fixed cost Total costs 0 Cost per unit: Variable cost Fixed cost Total cost per unit 0.00 S 0.00 S 0.00 Required1 Required 2 >

Answer 1

Calculate following

	51000	71000	91000
Total Cost
Variable cost	132600	184600	236600
Fixed cost	300000	300000	300000
Total Cost	432600	484600	536600
Cost per unit
Variable cost	2.60	2.60	2.60
Fixed cost	5.88	4.23	3.30
Total Cost per unit	8.48	6.83	5.90

Contribution format income statement

Sales (81000*7.83)	634230
Variable cost (81000*2.6)	210600
Contribution margin	423630
Fixed cost	300000
Net operating income	123630