A partially completed schedule of the company\'s total and per unit costs over a
ID: 2485013 • Letter: A
Question
A partially completed schedule of the company's total and per unit costs over a relevant range of 61,000 to 101,000 units produced and sold each year is given below. Complete the schedule of the company's total and unit costs. (Round the "Cost per unit" to 2 decimal places. Omit the "$" sign in your response.) Assume that the company produces and sells 91,000 units during the year at the selling price of $7.77 per unit. Prepare a contribution format income statement for the year. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.)Explanation / Answer
Units Produced and Sold
Total Costs:
61,000
81,000
101,000
Variable Costs
134,200
178,200
222,200
Fixed Costs
370,000
370,000
370,000
Total Costs
504,200
548,200
592,200
Cost Per Unit:
Variable Cost
2.20
2.20
2.20
Fixed Cost
6.07
4.57
3.66
Total Cost Per unit
8.27
6.77
5.86
Computation of Contribution
Particulars
Desks
Sales
$ 707,070
Variable costs
$ 200,200
Contribution margin per unit
$ 506,870
Less: Fixed Cost
$ 370,000
Net Operating Income
$ 136,870
Units Produced and Sold
Total Costs:
61,000
81,000
101,000
Variable Costs
134,200
178,200
222,200
Fixed Costs
370,000
370,000
370,000
Total Costs
504,200
548,200
592,200
Cost Per Unit:
Variable Cost
2.20
2.20
2.20
Fixed Cost
6.07
4.57
3.66
Total Cost Per unit
8.27
6.77
5.86
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