Cost behavior; contribution format income statement [lo2-4, lo2-6] 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: units produced and sold 30,000 40,000 50,000 $180,000 300,000 $480.000 total costs: variable costs fixed costs total costs cost per unit: variable cost fixed cost total cost per unit | ww lol required: 1. complete the schedule of the company's total and unit costs above. 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.

This question has two requirements answer of each requirment is given separately below.

Complete schedule of the company's total and unit costs

Variable cost per unit = (180,000/30,000)              = $ 6 -A

Fixed rate per unit = (300,000/45,000 (assume))   = $ 6.67 -B

Total Fixed per unit =  A+ B                                       = $ 12.67

Total cost = 45,000 *12.67                                         = $ 570,000

Contribution format income statement for the year

Sales                                              $ 720,000

Variable cost                                 $ 270,000

Contribution margin                     $ 420,000

Fixed cost                                     $ 300,000

Net operating income                 $ 120,000

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