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Question Two Cost Behaviour; Contribution-Format Income Statement Parker Company manufactures and sells a single product. A partially completed schedule of the company's total and
Question Two Cost Behaviour; Contribution-Format Income Statement Parker Company manufactures and sells a single product. A partially completed schedule of the company's total and per unit costs over a relevant range of 60,000 to 100,000 units produced and sold each year is given below: Total costs: Variable costs Fixed costs Total costs Cost per unit: Variable cost Fixed cost Total cost per unit Units Produced and Sold 60,000 80,000 100,000 $150,000 ? 360,000 ? $510,000 ? 222 ? 222 ? ? ? 1) Complete the schedule of the company's total and unit costs above. 2) Assume that the company produces and sells 90,000 units during the year at the selling price of $7.50 per unit. Prepare a contribution-format income statement for the year.
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