A partially completed schedule of the company’s total and per unit costs over th

Question

A partially completed schedule of the company’s total and per unit costs over the relevant range of 56,000 to 96,000 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.)

A partially completed schedule of the company’s total and per unit costs over the relevant range of 56,000 to 96,000 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.)

Units Produced and Sold 56,000 76,000 96,000 Total costs: Variable costs $145,600 Fixed costs 470,000 Total costs $615,600 $0 $0 Cost per unit: Variable cost Fixed cost Total cost per unit $0.00 $0.00 $0.00 Assume that the company produces and sells 86,000 units during the year at a selling price of $9.78 per unit. Prepare a contribution format income statement for the year.
   Harris Company Contribution Format Income Statement

Explanation / Answer

Units Produced and Sold 56,000 76,000 96,000 Total costs: Variable costs $145,600 76,000 x $2.60 = 197,600 96,000 x $2.60 = $249,600 Fixed costs 470,000 470,000 470,000 Total costs $615,600 $667,600 $719,600 Cost per unit: Variable cost $145,600 / 56,000 = $2.60 $2.60 $2.60 Fixed cost $470,000 / 56,000 = $8.38 $470,000 / 76,000 = $470,000 / 96,000 = Total cost per unit $10.99 $8.78 $7.50

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