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 68,000 to 108,000 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 98,000 units during the year at a selling price of $6.96 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 variable cost and fixed cost to 2 decimal places.) Units Produced and Sold 68,000 88.000 108,000 s 142,8001 340,000 482.800 $ Total costs Variable cost Fed cost Total costs Cost per unit Variable cost Fbed cost Total cost per unit Assume that the company produces and sells 98,000 units during the year at a selling price of $6.96 per unit. Prepare a contribution format income statement for the year. Harris Company Contribution Format Income Statement

Answer 1

1)			68,000	88,000	108,000
	total costs
	Variable costs		142,800	184800	226800
	fixed costs		340,000	340,000	340,000
	total costs		482,800	524800	566800
	cost per unit
	Variable costs		2.10	2.10	2.10
	fixed costs		5.00	3.86	3.15
	total cost per unit		7.10	5.96	5.25
2)		Contribution format income statement
	sales	(98000*6.96)			682080
	less variablec cost (98000*2.1)				205800
	Contribution margin				476280
	less fixed cost				340,000
	Net income				136,280