Answered: Units Produced and Sold 30,000 40,000…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2MC: A companys product sells for $150 and has variable costs of $60 associated with the product. What is...

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Cost Behavior; Contribution Format Income Statement

Harris Company manufactures and sells a single product. A partially completed schedule of the company’s total costs and costs per unit over the relevant range of 30,000 to 50,000 units is given below:

Required:

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

2. Assume that the company produces and sells 45,000 units during the year at a selling price of $ 16 per unit. Prepare a contribution format income statement for the year.

Units Produced and Sold
30,000
40,000
50,000
Total costs:
Variable cost.......
$180,000
300,000
$480,000
Fixed cost..
Total cost
Costs per unit
Variable cost
Fixed cost....
Total cost per unit......

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