Harris Company manufactures and sells a single product A par

Harris Company manufactures and sells a single product. A partially completed schedule of company\'s total and per unit costs over relevant range of 56,000 to 96,000 units produced and sold eventually is given: Units Produced/Sold=56,000 Total Costs Variable Costs.....$162,400 Fixed Costs........$340,000 Total Costs..........$502,400 Cost per unit: Variable Cost.....? Fixed Cost.......? Total Cost per unit....? Units Produced/Sold=76,000 Total Costs Variable Costs.....? Fixed Costs........? Total Costs.........? Cost per unit: Variable Cost.....? Fixed Cost.......? Total Cost per unit....? Units Produced/Sold=96,000 Total Costs Variable Costs.....? Fixed Costs........? Total Costs..........? Cost per unit: Variable Cost.....? Fixed Cost.......? Total Cost per unit....? Required: 1. Complete schedule of company\'s total and unit costs above. 2. Assume company produces and sells 86,000 units during the year at a selling price of $8.37 per unit. Prepare contribution formal income statement for the year.

Solution

Dear Student Thank you for using Chegg Please find below the answer    Statementshowing Computations Paticulars Amount Amount per unit Variable Costs         162,400.00                      2.90 Fixed costs         340,000.00                      6.07 Total Costs         502,400.00                      8.97 Units produced             76,000.00 Variable Costs         220,400.00                      2.90 Fixed costs         340,000.00                      4.47 Total Costs         560,400.00                      7.37 Units produced             96,000.00 Variable Costs         278,400.00                      2.90 Fixed costs         340,000.00                      3.54 Total Costs         618,400.00                      6.44 Statementshowing Computations Paticulars Amount Sales         719,820.00 Less Variable Expenses         249,400.00 Contribution Margin         470,420.00 Fixed cost         340,000.00 Net operating income         130,420.00