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oncom%2Fpaamweb%2Findexhtrm0%23%2F https/ DULE 2 CHAPTER 1 6 4 Exercise 1-11 Cos

ID: 2331584 • Letter: O

Question

oncom%2Fpaamweb%2Findexhtrm0%23%2F https/ DULE 2 CHAPTER 1 6 4 Exercise 1-11 Cost Behavior; Contribution Format Income Statement [101-4. L01 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 64,000 to 104,000 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 sels 94,000 units during the year at a selling price of $927 per unit. Prepare a contribution format income statement for the year Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the schedule of the company's total costs and costs per unit as given in the relevant tab below.(Round the per uni variabile cost and fixed cost to 2 decimal places)

Explanation / Answer

Answer:

1

Units Produced and Sold

64000

84000

104000

Total costs:

Variable costs

262400

344400

426400

Fixed costs

350,000

350,000

350,000

Total costs

612,400

694,400

776,400

Cost per unit:

Variable cost

4.1

4.1

4.1

Fixed cost

5.47

4.17

3.37

Total cost per unit

9.57

8.27

7.47

2

Herris Company

Contribution Format Income Statement

  Sales(94,000 units × $9.27 per unit)

871380

  Variable expenses (94,000 units × $4.1 per unit)

385400

  Contribution margin

485980

  Fixed expenses

350,000

  Net operating income

135,980

Units Produced and Sold

64000

84000

104000

Total costs:

Variable costs

262400

344400

426400

Fixed costs

350,000

350,000

350,000

Total costs

612,400

694,400

776,400

Cost per unit:

Variable cost

4.1

4.1

4.1

Fixed cost

5.47

4.17

3.37

Total cost per unit

9.57

8.27

7.47