Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Exercise 1-11 (Algo) Cost Behavior; Contribution Format Income Statement [LO1-4, LO1-6] Harris Company manufactures and sells a single product. A partially completed schedule of the
Exercise 1-11 (Algo) 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 64,000 to 104,000 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 94,000 units during the year at a selling price of $8.19 per unit. Prepare a contribution format income statement for the year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assume that the company produces and sells 94,000 units during the year at a selling price of $8.19 per unit. Prepare a contribution format income statement for the year. Note: Round your intermediate calculations to 2 decimal places. Harris Company Contribution Format Income Statement Sales 769,860 Variable expenses Contribution margin Fixed expense 360,000 Net operating income Required 1 Required 2 Complete the schedule of the company's total costs and costs per unit as give Note: Round the per unit variable cost and fixed cost to 2 decimal places. Total cost: t Units Produced and Sold 64,000 84,000 104,000 Variate cost Fixed cost ences Total cost 69 $ 185,600 243,600 301,600 360,000 360,000 360,000 $ 545,600 $ 603,600 $ 661,600 Cost per unit: Variable cost 2.90 2.90 2.90 Fixed cost 5.63 4.29 3.46 Total cost per unit 8.53 7.19 $ 6.36
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started