Question
Milden Company manufactures and sells a single product. A partially completed schedule of the companys total and per unit costs over a relevant range of
Milden Company manufactures and sells a single product. A partially completed schedule of the
companys total and per unit costs over a relevant range of 60,000 to 100,000 units produced and
sold each year is given in the Problem 3 sheet of the Lab Template.
Use the template provided on the Problem 3 sheet of the Lab Template.
1. Complete the schedule of the companys total and unit costs.
2. Assume that the company produces and sells 90,000 units during the year at the selling price
of $ 9.50 per unit. Prepare a contribution format income statement for the year.
3. Answer the questions at the bottom of the sheet
Units Produced and Sold 80,000 60,000 100,000 TOTAL COSTS: Variable Costs$ Fixed Costs $158,000.00 $210,666.67 $ 263,333.33 $370,000.00 $520,000.00 Total Costs COST PER UNIT Variable Cost Fixed Cost Total Cost Per Unit Income Statement In Contribution Format Sales Variable Expenses Contribution Margin Fixed Expenses NetOeing Income What effect does an increase in the number of units manufactured have on: a. Unit fixed costs? Explain why b. Unit variables costs?Explain why. c. Total fixed costs? Explain why d. Total variable costs? Explain why
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