Question

unit over the relevant range of 67,000 to 107,000 units is given below: Required 1. Complete the schedule of the company's total costs and costs per unit as given in the relevant tab below 2. Assume that the company produces and sells 97,000 units during the year at a selling price of $7.82 per unit. Prepare a contribution format income statement for the year Complete this question by entering your answers in the tabs below Required 1Required 2 Complete the schedule of the company's total costs and costs per unit as given in the relevant tab below. (Round the per unit variable cost and fixed cost to 2 decimal places.) Units Produced and Sold 67,000 87,000 107,000 Total costs Variable costs 680,340 350,000 537,600 1,030,340$1,186,740 187,600 836,740 Fixed costs 350,000 350,000 Total costs Cost per unit: Variable cost Fixed cost Total cost per unit 0.00 S 0.00 $ 0.00 Required Required 2

Answer 1

Requirement 1

	Units produced and sold
	67000	87000	107000
Total costs:
Variable costs	$ 1,87,600.00	$    2,43,600.00 *	$   2,99,600.00
Fixed costs	$ 3,50,000.00	$    3,50,000.00	$   3,50,000.00
Total costs:	$ 5,37,600.00	$    5,93,600.00	$   6,49,600.00
Cost per unit
Variable costs	$                2.80	$                   2.80	$                 2.80
Fixed costs	$               5.22	$                   4.02	$                 3.27
Total Cost per unit	$                8.02	$                   6.82	$                 6.07

*187600/67000 units x 87000 units

Requirement 2

Contribution margin income statement
Sales revenue (97000 x 7.82)	$ 7,58,540.00
Less: Variable cost (2.80 x 97000)	$ 2,71,600.00
Contribution margin	$ 4,86,940.00
Fixed cost	$ 3,50,000.00
Operating profit	$ 1,36,940.00