1. A partially completed schedule of the company’s total and per unit costs over
ID: 3206141 • Letter: 1
Question
1. A partially completed schedule of the company’s total and per unit costs over the relevant range of 69,000 to 109,000 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 99,000 units during the year at a selling price of $7.34 per unit. Prepare a contribution format income statement for the year. (Do not round intermediate calculations.)
Units Produced and Sold ---------------- ---------------- 69,000 89,000 109,000 Total Costs Variable Costs 158,700 Fixed Costs 360,000 Total Costs 518,700 Cost Per Unit Variable Cost Fixed Cost Total Cost Per UnitExplanation / Answer
as variable cost =158700 for 69000 units
hence variable cost =69000/158700 =$2.3/unit
also total cost =fixed cost+varaible cost
cost perunit =total/cost
Units Produced and Sold 69,000 89,000 1,09,000 99000 Total Costs Variable Costs=2.3*total units 1,58,700 2,04,700 2,50,700 2,27,700 Fixed Costs @360000 3,60,000 3,60,000 3,60,000 3,60,000 Total Costs 5,18,700 5,64,700 6,10,700 5,87,700 Cost Per Unit Variable Cost/total units 2.3 2.3 2.3 2.3 Fixed Cost/totalunits 5.22 4.04 3.30 3.64 Total Cost Per Unit 7.52 6.34 5.60 5.94 Contribution=(7.34-total cost/unit)*number of units -12240 88560 189360 138960Related Questions
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