Question

unit over the relevant range of 63,000 to 103,000 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 93,000 units during the year at a selling price of $7.48 per unit. Prepare a contribution format income statement for the year. 2.5 points Complete this question by entering your answers in the tabs below. eBook Hint Required 1 Required 2 Print 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.) References Units Produced and Sold 103,000 63,000 83,000 Total costs: 157,500 Variable costs 330,000 Fixed costs Total costs 487,500 Cost per unit: Variable cost Fixed cost Total cost per unit < Required 1 Required 2 >

Answer 1

Solution

	Units produced and sold
	63000	83000	103000
Total costs:
Variable costs	$ 157,500	$ 207,500*	$ 257,500
Fixed costs	$ 330,000	$ 330,000	$ 330,000
Total costs:	$ 487,500	$ 537,500	$ 587,500
Cost per unit
Variable costs	$ 2.50	$ 2.50	$ 2.50
Fixed costs	$ 5.24	$ 3.98	$ 3.20
Total Cost per unit	$ 7.74	$ 6.48	$ 5.70

*157500/63000 x 83000

.

Harris Company
Contribution margin income statement
Sales revenue	$ 695,640
Less: Variable cost (2.50 x 93000)	$ 232,500
Contribution margin	$ 463,140
Fixed cost	$ 330,000
Operating profit	$ 133,140