1. 2. A partially completed schedule of the company\'s total and per unit costs

Question

1.

2.

A partially completed schedule of the company's total and per unit costs over a relevant range of 60,000 to 100,000 units produced and sold each year is given below. Complete the schedule of the company's total and units costs. (Round the "Cost per unit" to 2 decimal places. Omit the "$" sign in your response.) Assume that the company produces and sells 90,000 units during the year at the selling price of $7.50 per unit. Prepare a contribution format income statement for the year. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "$" sign in your response.)

Explanation / Answer

Variable cost per unit=200000/80000

=$2.5 per unit

At 90000 level Variable cost=$2.5*90000

=$225000

Statement of profit:

Sales=$675000

Less:Variable costs=$225000

Contribution Margin=$450000

less:Fixed expenses=$360000

Net Operating income=$90000

Note:Total fixed expenses are constant at any level of production

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.