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 53,000 to 93,000 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 83,000 units during the year at a selling price of $9.40 per unit. Prepare a contribution format income statement for the year.

Answer 1

Answer is as follows: Variable cost per unit remains constant Fined cost in total remains constant. Variable cost per unit: $2113 DO = $2:1 per Completion of schedule: given infomation: From unit 53000 93000 Total costs: Total fixed cost : $460000 53000 73000 (73000X2: D 93000x2-1) Variable costß 111300 153300 195300 Fined costs $ H60000 460000 Total costs 571300 613300 655 300 460000 Cost per unit: Variable cost: $2.10 Fixed cost: 460000 $8.68 units Total cost per unit: $10.78 $ 2.10 $6.30 $8.40 B 2.10 $4.95 $7.05

780200 R. 2. Contribution format Income statement: Harris Company Contribution format Income statement Particulars Amount (6) Sales (83000 units* $9.40) (²) Variable cost (83000 units x Bain (174300) Contribution margin 605900 G Fined costs (460000) Net Operating Pncome 145900