Question

Exercise 1-11 Cost Behavior, Contribution Format Income Statement (LO1-4, LO1-6) Harris Company manufactures and sells a single product. A partially completed schedule of the company's total costs and costs per unit over the relevant range of 50,000 to 90,000 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 80,000 units during the year at a selling price of $10.49 per unit. Prepare a contribution format income statement for the year. Complete this question by entering your answers in the tabs below. Required 1 Required 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 50,000 70,000 90,000 Total costs Variable cost Fooed cost 160,000 440,000 600,000 Total costs $ Cost per unit Variable cost Fixed cost Total cost per unit 000 $ 0.001S 0.00 Required 2 >

Answer 1

Variable cost per unit and total fixed costs remain same within the relevant range
Units	50000	70000	90000
Total costs:
Variable cost	160000	224000	288000
Fixed cost	440000	440000	440000
Total costs	600000	664000	728000
Cost per unit
Variable cost	3.2	3.2	3.2
Fixed cost	8.8	6.285714286	4.888888889
Total cost per unit	12	9.485714286	8.088888889
Contribution format income statement
Sales	839,200
Less: variable costs	256,000
Contribution Margin	583,200
Less: Fixed costs	440,000
Net Operating income	143,200

в с р 50000 70000 90000 160000 =C8*C2 =D8*D2 440000 440000 440000 =SUM(B4:B5) =SUM(C4:C5) |=SUM(D4:05) | 1 Variable cost per unit and total fixed costs remain same within the relevant range 2 Units 3 Total costs: 4 Variable cost 5 Fixed cost 6 Total costs 7 Cost per unit 8 Variable cost 9 Fixed cost 10 Total cost per unit 11 12 Contribution format income statement 13 Sales 14 Less: variable costs 15 Contribution Margin 16 Less: Fixed costs 17 Net Operating income =B4/B2 =B8 =C8 =B5/B2 =C5/C2 =D5/D2 =SUM(B8:B9) =SUM(C8:09) =SUM(D8:09) =80000* 10.49 =80000*38 =B13-B14 =B5 =B15-B16