pany manufactures and sels a single product A partally compl

pany manufactures and sels a single product. A partally 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 te the schedule of the company\'s total costs and costs per unit as given in the relevant tab below 2. Assume format income statement for the year. that the company produces and sells 90,000 units during the year at a selling price of $9.07 per unit. Prepare a Complete this question by entering your answers in the tabs below. cost and flxed cost to 2 decimal places.) e of the company\'s total costs and costs per unit as given in the relevant tab below. (Round the per unit 60,000 80,000 100 192.000 390 000

Solution

60000 80000 100000 Total costs: Variable costs 192000 256000 320000 Fixed costs 390000 390000 390000 Total costs 582000 646000 710000 Cost per unit: Variable cost 3.2 3.2 3.2 Fixed cost 6.5 4.88 3.9 Total cost per unit 9.7 8.08 7.1 2 Contribution Format Income Statement Sales 816300 =90000*9.07 Variable expenses 288000 =90000*3.2 Contribution margin 528300 Fixed expense 390000 Net operating income 138300