Homework SourseHarris Company manufactures and sells a single product Requi
Harris Company manufactures and sells a single product Required: 1. A partially completed schedule of the company\'s total and per unit costs over the relevant range of company\'s total and unit costs. Round the variable cost and fixed cost to 2 decimal places.) Units Produced and Sold 60,000 80,000 100,000 Total costs: Variable costs Fixed costs $240,000 480,000 480,000 480,000 Total costs $ 720,000 S480,000 $ 480,000 Cost per unit Variable cost Fixed cost Total cost per unit 0.00 S 000 S 0.00 2. Assume that the company produces and sells 90.000 units during the year at a selling price of $11 00 
Solution
1) Units produced and sold 60,000 80,000 1,00,000 Total costs: Variable cost $ 2,40,000 $ 3,20,000 $ 4,00,000 Fixed Cost $ 4,80,000 $ 4,80,000 $ 4,80,000 Total costs $ 7,20,000 $ 8,00,000 $ 8,80,000 Cost per unit: Variable cost $ 4.00 $ 4.00 $ 4.00 Fixed Cost $ 8.00 $ 6.00 $ 4.80 Total cost per unit $ 12.00 $ 10.00 $ 8.80 Note: Variable cost per unit is same and changed in total with change of units. Fixed Cost is same in all and per unit is changed. Variable cost per unit = Total Variable cost/total units = $ 2,40,000 / 60,000 = $ 4.00 Variable cost of: 60,000 Units = 60,000 x $ 4.00 = $ 2,40,000 80,000 Units = 80,000 x $ 4.00 = $ 3,20,000 1,00,000 Units = 1,00,000 x $ 4.00 = $ 4,00,000 Fixed Cost per unit of: 60,000 Units = $ 4,80,000 / 60,000 = $ 8.00 80,000 Units = $ 4,80,000 / 80,000 = $ 6.00 1,00,000 Units = $ 4,80,000 / 1,00,000 = $ 4.80 2) Harris Company Contribution format income statement Per Unit Total Sales $ 11.00 $ 9,90,000 Less:Variable cost $ 4.00 $ 3,60,000 Contribution Margin $ 7.00 $ 6,30,000 Less:Fixed Cost $ 4,80,000 Net Operating Income $ 1,50,000