Exercise D: Cost behavior; Income statement in contribution format

Sunset Company, Inc. manufactures and sells a unique product. The following table presents the total and unit costs within a relevant level of 30,000 to 60,000 units produced and sold annually

1. Complete the information in the table.

	Units manufactured and sold
	36,000	47,000	52,000
Total Costs
Fixed Costs	$ 80,000
Variable Costs	$195,000
Total Costs	$275,000
Costo unitario
unit fixed cost
Unit Variable Cost
total unit cost

2. Prepares an Income Statement in contribution format for a production level of 60,000 units per year sold at $40 each.