Wave Runners is a boat rental business that has the following costs over the relevant range of 12,000 to 18,000 operating hours for its boats:

Required:

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

2. Assume that Wave Runners rents it boats for $40 per hour and had 15,000 hours of rentals last year. Prepare a contribution format income statement for the year.

Transcribed Image Text:

Operating Hours 16,000 12,000 14,000 18,000 Total costs: Variable costs. Fixed costs .. $ 54,000 504,000 Total costs $558,000 Cost per unit: Variable cost. Fixed cost ... Total cost per hour.