Question
At an activity level of 6,000 units and a selling price of $125 per unit, Haas Corporation's total cost of goods sold (COGS) is $349,500.
At an activity level of 6,000 units and a selling price of $125 per unit, Haas Corporation's total cost of goods sold (COGS) is $349,500. Included in the COGS is rent and depreciation of $48,000. All other COGS are variable costs. Other fixed costs not included in COGS are $125,000. Required: For the activity level of 6,500 units, compute: (a) the total variable cost; (b) the total fixed cost; (c) the total cost; (d) the variable cost per unit; (e) the fixed cost per unit; (f) the total cost per unit; (g) Please prepare a contribution format income statement from the above data based on the 6,500 units and calculate the contribution margin and variable expense ratios.
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