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Exercise 1-11 Cost Behavior; Contribution Format Income Statement (LO1-4, LO1-6) 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 59,000 to 99,000 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 89,000 units during the year at a selling price of $8.76 per unit. Prepare a contribution format income statement for the year. X Answer is complete but not entirely correct. 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 unit variable cost and fixed cost to 2 decimal places.) Units Produced and Sold 59,000 79,000 99,000 Total costs: Variable costs $ 188,800 360,000 548,800 252,800 360,240 x Fixed costs 316,800 359,370 x 676,170 Total costs $ $ 613,040 S Cost per unit: Variable cost 3.20 3.20 3.20 Fixed cost 3.63 x 6.10 9.30 4.55 X 7.75 $ Total cost per unit $ $ 6.83 Cherokee Inc. is a merchandiser that provided the following information: Number of units sold Selling price per unit Variable selling expense per unit Variable administrative expense per unit Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases Amount 12,000 $ 15 $ 1 s 3 $ 19,000 $ 14,000 $ 11,000 $ 25,000 $ 86,000 Required: 1. Prepare a traditional income statement. 2. Prepare a contribution format income statement. * Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a traditional income statement. Cherokee, Inc. Traditional Income Statement Sales $ 180,000 72,000 108,000 Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses $ 12,000 x 36,000 48,000 Net operating income > $ 60,000 Required 1 Required 2 > Required 1 Required 2 Prepare a contribution format income statement. Cherokee, Inc. Contribution Format Income Statement Sales $ 180,000 Variable expenses: Purchases x $ 86,000 Selling expenses Administrative expenses 12,000 36,000 134,000 Contribution margin 46,000 X Fixed expenses: Selling expenses 19,000 Administrative expenses 14,000 33,000 Net operating income $ 13,000