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 59,000 to 99,000 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 89.000 units during the year at a selling price of 58.78 per unit. Prepare a contribution format income statement for the year. 2:05:16 Complete this question by entering your answers in the tabs below. Book rint Required 1 Required 2 rences 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 59,000 79,000 99,000 182,900 370,000 552,900 Total costs: Variable cost Fixed cost Total costs Cost per unit: Variable cost Fixed cost Total cost per unit < Prev 2 of 3 !! Next >

Answer 1

1)			59,000	79,000	99,000
	total costs
	Variable costs		182,900	244900	306900
	fixed costs		370,000	370,000	370,000
	total costs		552,900	614900	676900
	cost per unit
	Variable costs		3.10	3.10	3.10
	fixed costs		6.27	4.68	3.74
	total cost per unit		9.37	7.78	6.84
2)		Contribution format income statement
	sales	(89000*8.78)			781420
	less variablec cost		(89000*3.10)		275900
	Contribution margin				505520
	less fixed cost				370,000
	Net income				135,520