Harris Company manufactures and sells a single product Requi

Harris Company manufactures and sells a single product Required arially completed schedule of the company\'s total and per unit oosts over the relevant range of 85.000 to 105.000 units produced and sold annually is given below Complete the schedule of the company\'s total and unit costs. (Round the variable cost and fixed cost to 2 decimal places) Units Produced and S 65,000 Total costs Variable costs Fixed costs S 195,000 $095,000 Total costs Cost per unit Variable cost Foxed cost Total cost per unit 2. Assume that the company produces and sells 95,000 unts during the year a: a unit. Prepare a contribution format income statement for the year Harris Company Contribution Format Income Statement Type here to search CD

Solution

Variable cost/unit and Total fixed cost do not change with change in units.

	65000	85000	105000
Total costs:
Variable cost	195000	255000	315000
Fixed costs	500,000	500,000	500,000
Total costs	695000	755000	815000
Cost per unit:
Variable cost	$3	$3	$3
Fixed cost	(500,000/65000)=$7.69	(500,000/85000)=$5.88	(500,000/105000)=$4.76
Total cost per unit	$10.69	$8.88	$7.76