Question

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 95,000 units during the year at a selling price of $6.86 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 65,000 85,000 105,000 Total costs: Variable costs 136,500 Fixed costs 320,000 Total costs 456,500 $ Cost per unit: Variable cost 2.10 Fixed cost Total cost per unit $ 0 $ 0 $ 2.10 $ 0.00 $ 0.00 Required 1 Required 2 >

Answer 1

1	Units produced and sold
		65000	85000	105000
	Total cost
	Variable cost	$ 1,36,500	$       1,78,500	$       2,20,500
	Fixed cost per year	$ 3,20,000	$       3,20,000	$       3,20,000
	Total costs	$ 4,56,500	$       4,98,500	$       5,40,500
	Costs per unit
	Variable cost per unit	$         2.10	$               2.10	$               2.10
	Fixed cost per unit	$         4.92	$               3.76	$               3.05
	Total cost per unit	$         7.02	$               5.86	$               5.15

Note: Fixed cost per year will remain same irrespective of number units whereas it will change in case of Fixed cost per unit also Variable cost per unit will remain same and it will change in total.

2
	Units produced and sold	95000
	Harris Company
	Contribution format Income statement
	Sales (95000 units X $6.86)	$ 6,51,700
Less:	Variable cost (95000 units X $2.10)	$ 1,99,500
	Total contribution margin	$ 4,52,200
Less:	Fixed cost per year	$ 3,20,000
	Net operating Income (loss)	$ 1,32,200

D E 85000 105000 =C2*08 =B5 =SUM(C4:C5) =D2*D8 =C5 =SUM(D4:05) A B 1 Units produced and sold 2 65000 3 Total cost 4 Variable cost 136500 5 Fixed cost per year 320000 6 Total costs =SUM(B4:35) 7 Costs per unit 8 Variable cost per unit =B4/B2 9 Fixed cost per unit =B5/B2 10 Total cost per unit =SUM(B8:19) 11 12 Units produced and sold 95000 13 14 Harris Company 15 Contribution format Income statemen 16 Sales (95000 units X $6.86) =B12*6.86 17 Variable cost (95000 units X $2.10) =B12*B8 18 Total contribution margin =B16-B17 19 Fixed cost per year =B5 20 Net operating Income (loss) =B18-B19 21 =B8 =C5/C2 =SUM(C8:09) =C8 =D5/D2 =SUM(D8:09) 22 ube 23