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 (Round "Cost per hour answers to 2 decimal places.)

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

Transcribed Image Text:

Total costs: Variable costs Fixed costs Total costs Cost per unit: Variable cost Fixed cost Total cost per hour $ 54,000 504,000 $ 558,000 $ 12,000 $ 0.00 $ Operating Hours 14,000 0 $ 0.00 $ 16,000 0 $ 0.00 $ 18,000 0.00 $ 0 0 Total costs: Variable costs Fixed costs Total costs Cost per unit: Variable cost Fixed cost Total cost per hour $ 54,000 504,000 $ 558,000 $ 12,000 $ 0.00 $ Operating Hours 14,000 0 $ 0.00 $ 16,000 0 $ 0.00 $ 18,000 0.00 $ 0 0

Answer rating: 100% (QA)

1 Total Fixed Cost do not change with change in t... View the full answer