Question

Exercise 1-11 Cost Behavior; Contribution Format Income Statement [LO1-4, LO1-6) Harts Company manufactures and sells a single product. A partially completed schedule of the company's total costs ana costs per unit over the relevant range of 57,000 to 97000 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 87000 units during the year at a selling price of $917 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 aiven in the relevant tab below. (Round the per unit Round the per unit

Answer 1

1
	Units Produced and Sold
	57000	77000	97000
Total costs:
Variable costs	125400	169400	213400
Fixed costs	460000	460000	460000
Total costs	585400	629400	673400
Cost per unit:
Variable cost	2.20	2.20	2.20
Fixed cost	8.07	5.97	4.74
Total cost per unit	10.27	8.17	6.94
2
	Harris Company
	Contribution format Income Statement
Sales	797790	=87000*9.17
Variable expenses	191400	=87000*2.2
Contribution margin	606390
Fixed expense	460000
Net operating income	146390