Harris Company manufactures and sells a single product. Required: 1. A partially

Question

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 61,000 to 101,000 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 61,000 81,000 101,000 Total costs Variable costs S 237,900 Fixed costs 360,000 Total costs S 597,900 S Cost per unit Variable cost Fixed cost Total cost per unit 000S 000S 2. Assume that the company produces and sells 91,000 units during the year at a selling price of $9.34 per unit. Prepare a contribution format income statement for the year. (Do not round intermediate calculations.) Harris Company Contribution Format Income Statement

Explanation / Answer

61000 81000 101000 Total costs: Variable costs 237900 315900 393900 Fixed costs 360000 360000 360000 Total costs 597900 675900 753900 Cost per unit: Variable cost 3.90 3.90 3.90 Fixed cost 5.90 4.44 3.56 Total Cost per unit 9.80 8.34 7.46 2 Sales 849940 =91000*9.34 Variable costs 354900 =91000*3.9 Contribution margin 495040 Fixed cost 360000 Net Operating income 135040

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.