Asked May 11, 2007, 11:15 AM
Execise Cost Behavior: Contribution Format Income Satement
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 annyally is given below:
Units produced and sold 30,000 40,000 50,000
Variable costs $180,000?
Fixed costs 300,000?
Total cost $480,000?
Cost per unit:
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.