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EXERCISE 2-10 Cost Behavior; Contribution Format Income Statement [LO 2-4, LO 2-6] Harris Company manufactures and sells a single product. A partially completed schedule
EXERCISE 2-10 Cost Behavior; Contribution Format Income Statement [LO 2-4, LO 2-6] Harris Company manufactures and sells a single product. A partially completed schedule of the company's total and per unit costs over the relevant range of 30,000 to 50,000 units produced and sold annually is given below: Required: Units Produced and Sold 30,000 40,000 50,000 Total costs: Variable costs..... $180,000 ? ? Fixed costs.... 300,000 ? ? Total costs.... $480,000 ? Cost per unit: Variable cost.... ? ? Fixed cost.. ? ? ? Total cost per unit.. ? ? ? 1. Complete the schedule of the company's total and unit costs above. 2. Assume that the company produces and sells 45,000 units during the year at a selling price of $16 per unit. Prepare a contribution format income statement for the year.
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