Harris Company manufactures and sells a single product. A partially completed sc

Question

Harris Company manufactures and sells a single product. A partially completed schedule of the company's total and per unit costs over the relevant range of 61.000 to 101.000 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.) Assume that the company produces and sells 91.000 units during the year at a selling price of $9.45 per unit. Prepare a contribution format income statement for the year.

Explanation / Answer

(1) The companys total and per unit cost on various range of production are:

(2) The contribution on producing and selling 91000 units by the Company is as under:

Net Profit = Contribution - Fixed Cost = $ 641550 - $ 490000 = $ 151550

PARTICULARS UNITS PRODUCED & SOLD UNITS 61000 81000 101000 Total Cost: Variable Cost ($) $146400 194400 242400 Fixed Cost ($) 490000 490000 490000 Total Costs: $636400 $684400 $732400 Cost per Unit: Variable cost $2.40 2.40 2.40 Fixed cost 8.03 6.05 4.85 Total Cost per unit($) $10.43 $8.45 $7.25

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