c o C i Secure httpsnewcon s For quick access place your b

c o C | i Secure : https://newcon s For quick access, place your bookmarks here on the bookmarks bar. import bookmarks now... ow/connect html Chapter 1 Homework Assignment 7 Exercise 1-11 Cost Behavior; Contribution Format Income Statement (L014, Lol 15 points Harris Compeny 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 60,000 to 100,000 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 90,000 units during the year at a selling price of $8.48 per unit. Prepare a contribution format income statement for the yeer PHint 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 a variable cost and fixed cost to 2 decimal places.) s given in the relevant tab below. (Round the per unit Units Produced and Sold 60,000 80,000100,000 Total costs variable sts 156,000 390,000 546,000 S Fxed costs Total costs Cost per unit Variable cost Fixed cost Prev 7 of 10 Next 43 18

Solution

1.

The total fixed costs will remain the same over the range of 60,000 to 100,000 units. The total variable costs will vary in proportion to number of units.

2.

	Units produced and sold
	60000	80000	100000
Total costs:
Variable costs	156000	208000	260000
Fixed costs	390000	390000	390000
Total cost	546000	598000	650000
Cost per unit:
Variable costs	2.60	2.60	2.60
Fixed costs	6.50	4.88	3.90
Total cost per unit	9.10	7.48	6.50