Question: EXERCISE 6-7 Understanding Cost Behaviour and Contribution Margin Income Statement [L01 - CC1, 3; LO3-CC12] Harris Company manufactures and sells a single product. A partially
EXERCISE 6-7 Understanding Cost Behaviour and Contribution Margin Income Statement [L01 - CC1, 3; LO3-CC12] 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 to 50,000 units produced and sold annually is given below: Page 325 Units Produced and Sold 30,000 40,000 50,000 Total costs: Variable costs $180,000 ? ? ? ? Fixed costs Total costs 2 Cost per unit: Variable cost Fixed cost 2 ? ? ? ? 7.50 Total cost per unit Required: 1. Complete the schedule of the company's total and unit costs. 2. Assume that the company produces and sells 45,000 units during a year at a selling price of $16 per unit. Prepare a contribution margin income statement for the year
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
