Harris Company manufactures and sells a single product Required: 1. A partially completed schedule of the company’s total and per unit costs over the relevant range of 51,000 to 91,000 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 51,000 1,00091 Total costs: Variable costs $112,200 Fixed costs 370,000 Total costs $ 482,200 $ Cost per unit: Variable cost Fixed cost ral cel Per 000 5 00 5 0.00 0.00 $ 0.00 S 2. Assume that the company produces and sells 81,000 units during the year at a selling price of $8.41 per unit. Prepare a contribution format income statement for the year Format Income Statement
Expert Answer
Please find below the answer and please give thumbs up | |||
Statementshowing Computations | Units produced and sold | ||
Paticulars | 51,000 Units | 71,000 Units | 91,000 Units |
Total Costs: | |||
Variable costs | 112,200.00 | 156,200.00 | 200,200.00 |
Fixed costs | 370,000.00 | 370,000.00 | 370,000.00 |
Total Costs | 482,200.00 | 526,200.00 | 570,200.00 |
Costs per unit | |||
Variable costs | 2.20 | 2.20 | 2.20 |
Fixed costs | 7.25 | 5.21 | 4.07 |
Total cost per unit | 9.45 | 7.41 | 6.27 |
Statementshowing Computations | |||
Paticulars | Amount | ||
Sales = 81,000*8.41 | 681,210.00 | ||
Less Variable Expenses=81000*2.20 | 178,200.00 | ||
Contribution Margin | 503,010.00 | ||
Less Fixed Expenses | 370,000.00 | ||
Net operating income | 133,010.00 |