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 companys total costs and costs per unit over the relevant range of 61,000 to 101,000 units is given below:

Required:

1. Complete the schedule of the companys total costs and costs per unit as given in the relevant tab below.

2. Assume that the company produces and sells 91,000 units during the year at a selling price of $8.37 per unit. Prepare a contribution format income statement for the year.

Units Produced and Sold:

61,000 81,000 101,000

VC: $170,800

FC: $370,000

Total Costs: $540,800