FQR’s Gadgets 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 during a given year is provided here:

a. Complete the schedule for the company’s total and unit costs.

b. Assume that the company sells 90,000 units during a year. The selling price is $9.00 per unit. Prepare an income statement using the contribution margin format for that year.

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Variable costs Units Produced and Sold 80,000 60,000 $180,000 100,000