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 costs and costs per unit over the relevant range of 61,000 to 101,000 units is given below: Required: 1. Complete the schedule of the company's total costs and costs per unit as given in the relevant tab below 2. Assume that the company produces and sells 91,000 units during the year at a selling price of $8.97 per unit. Prepare a contribution format income statement for the year Complete this question by entering your answers in the tabs below. Required 1Required 2 Complete the schedule of the company's total costs and costs per unit as given in the relevant tab below. (Round the per unit variable cost and fixed cost to 2 decimal places.)

Explanation / Answer

Requirement 1

Note for understanding : Variable cost per unit remains same for any level of output whearas Fixed cost per unit changes with levels of output.

Varible cost per unit : 207,400 / 61,000 = $3.40

Requirement 2

Units Produced and Sold 61,000 81,000 101,000 Total costs : Variable costs 207,400 275,400 343,400 Fixed costs 370,000 370,000 370,000 Total costs 577,400 645,400 713,400 Cost per unit Variable cost 3.40 3.40 3.40 Fixed cost 6.07 4.57 3.66 Total cost per unit 9.47 7.97 7.06

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