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28 Cost Behavior; Contribution Format Income Statement [LO3, LO5] Parker Company manufactures and sells a single product. A partially completed schedule of the companys total

28 Cost Behavior; Contribution Format Income Statement [LO3, LO5] Parker Company manufactures and sells a single product. A partially completed schedule of the companys total and per unit costs over a relevant range of 60,000 to 100,000 units produced and sold each year is given below:

Units Produced and Sold

60,000/ 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 . . . . . . . . ? ? ? ?? ??

Required:

1. Complete the schedule of the companys 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.

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