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 52,000 to 92,000 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 82,000 units during the year at a selling price of $9.64 per unit. Prepare a contribution format income statement for the year. Complete this question by entering your answers in the tabs below

Solution

1 52000 72000 92000 Total costs: Variable costs 182000 252000 322000 Fixed costs 370000 370000 370000 Total costs 552000 622000 692000 Cost per unit: Variable cost 3.50 3.50 3.50 Fixed cost 7.12 5.14 4.02 Total Cost per unit 10.62 8.64 7.52 2 Contribution Format income statement Sales revenue 790480 =82000*9.64 Variable costs 287000 =82000*3.5 Contribution margin 503480 Fixed costs 370000 Net income 133480