Question

70CDI com%252Fmghmiddleware%252Fm YouTube Maps hapters 1. 2.&3 0 Saved Harris company manuractures and sells a single producL A partially completed schedule of the company s total costs and costs per unit over the relevant range of 54,000 to 94,000 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 84,000 units during the year at a selling price of $10.27 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 54,000 74,000 94,000 $ 216,000 390,000 606,000 $ 0 $ 0$ Total costs Variable costs Fixed costs Total costs Cost per unit Variable cost Fixed cost Total cost per unit $ 0.00 $ 0.00 $ 0.00 < Prey 11 of 30 Next >

Answer 1

2) When Units produced and sells 84000 units, Selling Price $ 10.27 pecunit Income Statement Sales (84000 x 10:27) $ 862680 less! Variable cost (84000 x 4) 336000 Contribution margin 526680 lessi fixed cost 39000 Net Income $ 136680

D units Produced and sold 5uao 74ooo quovo Total cost? Varicble cost fixed cost Total cost 216600 296000 376000 390000 390000 390000 Go bouu 686000 766000 Cost per unit Varicble cost fined cost 4 4 u ॥ 4 니 7.22 5.27 4.15 Total Cost per unit 11.22 9.27 8.15

Total Fixed cost remain same irrespective of volumes.

But fixed cost per unit changes with change in volume