Question

3-5 Managerial Accounting

3-5 Cost Behavior; Contribution Format Income Statement

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 to50,000 units produced and sold annually is given below:

Units Produced and Sold
30,000 40,000 50,000

Total costs:
Variable costs ……………….. $180,000 ? ?
Fixed costs …………………… 300,000 ? ?
Total costs ……………………….. $480,000 ? ?
Cost per unit:
Variable cost …………………. ? ? ?
Fixed cost …………………….. ? ? ?
Total cost per unit …………….. ? ? ?

1. Complete the schedule of the company's total and unit costs above.

2. Assnme 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 theyear.

Solutions

Expert Solution
No answers


Submit Your Answer