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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 60,000 to 100,000 units is given below: Required: 1. Complete the schedule of the company’s total costs and costs per unit as given in the relevant tab below. 2. Assume that the company produces and sells 90,000 units during the year at a selling price of $9.88 per unit. Prepare a contribution format income statement for the year.

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anthougo

1. The completion of the schedule of Harris Company's total costs and costs per unit is as follows:

Schedule of Total Costs and Costs Per Unit:

                                               Units Produced and Sold

                                      60,000        80,000          100,000

Total costs:

Variable costs           $138,000     $184,000      $230,000

Fixed costs                 340,000      340,000        340,000

Total costs               $478,000    $524,000      $570,000

Cost per unit:

Variable cost                $2.30            $2.30            $2.30

Fixed cost                    $5.67             $4.25            $3.40

Total cost per unit       $7.97            $6.55             $5.70

2. The contribution-format income statement of Harris Company for the year is as follows:

Harris Company

Contribution-format Income Statement

For the year

Sales Revenue               $889,200

Cost of goods sold          207,000

Contribution margin      $682,200

Fixed costs                      340,000

Net income                   $342,200

Data and Calculations:

                                               Units Produced and Sold

                                      60,000        80,000          100,000

Total costs:

Variable costs           $138,000     $184,000      $230,000

Fixed costs                 340,000      340,000        340,000

Total costs               $478,000    $524,000      $570,000

Cost per unit:

Variable cost                $2.30            $2.30            $2.30

Fixed cost                    $5.67             $4.25            $3.40

Total cost per unit       $7.97            $6.55             $5.70

Sales revenue = $899,200 ($9.88 x 90,000)

Cost of goods sold = $207,000 ($2.30 x 90,000)

Thus, based on a production and sales unit of 90,000 at $9.88 per unit, the net income for the year, using the contribution format, is $342,200.

Learn more about the contribution-format income statement at https://brainly.com/question/24052393

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Question Completion:

                                               Units Produced and Sold

                                      60,000        80,000          100,000

Total costs:

Variable costs           $138,000

Fixed costs                 340,000

Total costs               $478,000

Cost per unit:

Variable cost                $

Fixed cost                     $

Total cost per unit       $