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 55,000 to 95,000 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 85,000 units during the year at a selling price of $9.00 per unit. Prepare a contribution format income statement for the year.

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 55,000 75,000 95,000 Total costs: Variable cost $220,000 Fixed cost 300,000 Total costs $520,000 Cost per unit: Variable cost Fixed cost Total cost per unit Assume that the company produces and sells 85,000 units during the year at a selling price of $9.00 per unit. Prepare a contribution format income statement for the year. Harris Company Contribution Format Income Statement

Answer 1

Ansro Units Produced and sold DT 55,000 75,000 95.000 Total Costs: Variable Costs fixed Costs. Total Costs Cost pere Unit: $220,000 $300,000 $380,000 $300,000 $300,000 $300,000 $ 520,000 | $600,000 $680,000 Variable lost fixed cost Total Cost Per Unit $4 $5.45 $9.45 $4 $4 $ 8 $.44 $3.16 $7.16 Harris Company Contribution format Income statement Sales $ 76:5,000 $340,000 Variable Expenses Contribution margin » Pired Experses $425,000 $300,000 $125,000 Net operating Iriame

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