# Harris Company manufactures and sells a single product.

Harris Company manufactures and sells a single product. A partially completed schedule of the company’s total and per.

harris company manufactures and sells a single product.

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Harris Company manufactures and sells a single product.
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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 58,000 to 98,000 units produced and sold annually is given below:

Complete the schedule of the company’s total and unit costs. (Round the variable cost and fixed cost to 2 decimal places.) Assume that the company produces and sells 88,000 units during the year at a selling price of \$9.33 per unit. Prepare a contribution format income statement for the year.

harris company manufactures and sells a single product.

Variable cost/unit remains the same while total fixed costs remain the same irrespective of change in units.

 58000 78000 98000 Total costs: Variable costs \$133400 (2.3*78000)=\$179400 (2.3*98000)=\$225400 Fixed costs \$470,000 \$470,000 \$470,000 Total costs \$603400 \$649400 \$695400 Cost per unit: Variable cost (133400/58000)=\$2.3 \$2.3 \$2.3 Fixed costs (470,000/58000)=\$8.10 ((470,000/78000)=\$6.03 (470,000/98000)=\$4.80 Total cost per unit \$10.4 \$8.33 \$7.1

b.

 Particulars Amount(\$) Sales(88000*\$9.33) \$821040 Less:Variable costs(88000*2.3) \$202400 Contribution margin \$618640 Less:Fixed costs \$470,000 Net operating income \$148,640.

harris company manufactures and sells a single product.

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