Cost Behavior; Contribution Format Income Statement [LO3, LO5]

Parker Company manufactures and sells a single product. A partially completed schedule of the company’s total and per unit costs over a relevant range of 60,000 to 100,000 units produced and sold each year is given below:

Required:
1. Complete the schedule of the company’s total and unit costs.
2. Assume that the company produces and sells 90,000 units during the year at the selling price of $7.50 per unit. Prepare a contribution format income statement for the year.

Transcribed Image Text:

60,000 Units Produced and Sold 80,000 100,000 Total costs: Variable costs. $150,000 ? ? Fixed costs 360,000 ? ? Total costs $510,000 ? ? Cost per unit: Variable cost Fixed cost Total cost per unit |||| ? ? ? ? ? ?