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 63,000 to 103,000 units is given below:

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 63,000 to 103,000 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 93,000 units during the year at a selling price of $8.76 per unit. Prepare a contribution format income statement for the year.

Explanation

1.

The company's variable cost per unit is:

$132,300	= $2.10 per unit.
63,000 units

2.

Sales (93,000 units × $8.76 per unit) = $814,680

Variable expenses (93,000 units × $2.10 per unit) = $195,300

Thanks