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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
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:
1 | The companys variable cost per unit would be: | ||||||
Units produced and sold | |||||||
30,000 | 40,000 | 50,000 | |||||
Total costs: | |||||||
Variable costs | ? | ? | $300,000 | ||||
Fixed costs | ? | ? | |||||
Total costs | ? | ? | ? | ||||
Cost per unit: | |||||||
Variable cost | ? | ? | ? | ||||
Fixed cost | 10.00 | ? | ? | ||||
Total cost per unit | ? | ? | ? | ||||
Required:
1. Complete the schedule of the company's total and unit costs.
2. Assume that the company produces and sells 38,000 units during a year at a selling price of $16 per unit. Prepare a contribution margin income statement for the year.
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