Harris Company manufactures and sells a single product A par

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 68,000 to 108,000 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 98,000 units during the year at a selling price of $7.80 per unit. Prepare a contribution format income statement for the year Complete this question by entering your answers in the tabs below Required 1 Required 2 Complete the schedule of the company\'s total costs and costs per unit as given in the relevant tab below. (Round the per unit variable cost and fixed cost to 2 decimal places.) Units Produced and Sold 68,000 88,000 108,000 Total costs 176,800 370,000 546,800S 228,800 370,000 598,800$ 280,800 370,000 650,800 Variable costs Fixed costs Total costs Cost per unit: 2.60 5.44 8.04 $ 2.60 4.20 6.80 S 2.60 3.43 6.03 Variable cost Fixed cost Total cost per unit

Solution

Solution:

Requirement 1 --- I assumed that this is done correctly. Since the relevant data is not available only answer is available in the question for this requirement. Requirement 2 is completely depend upon the data of requirement 1, in case there is any wrong data in Requirement 1, the requirement 2 will also be incorrect. So let me know the correct data if there is any wrong entry cell.

Requirement 2 –

Contribution Format Income Statement

Sales Revenue (98,000 Units x $7.80)

$764,400

Less: Variable Cost (98,000 Units x $2.60 per unit)

$254,800

Contribution Margin

$509,600

Fixed Costs

$370,000

Operating Income

$139,600

Note – Fixed Cost will remain same irrespective of production volume. It means fixed cost in totality does not change whether production or sales volume increases or decreases.

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Contribution Format Income Statement
Sales Revenue (98,000 Units x $7.80)	$764,400
Less: Variable Cost (98,000 Units x $2.60 per unit)	$254,800
Contribution Margin	$509,600
Fixed Costs	$370,000
Operating Income	$139,600