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 67,000 to 107,000 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 97,000 units during the year at a selling price of $9.17 per unit. Prepare a contribution format income statement for the year.

Explanation:    A: Schedule

                                             $                           $                            $

Total cost:        

Units                                 67000                  87000                   107000

Variable Cost              254600       330600(87000*3.8) 406600(107000*3.8)    

Fixed cost                       380000                 380000                  380000

Total cost                        634600                  710600                   786600

Cost per unit:

Variable cost                       3.8                       3.8                            3.8

Fixed cost                            5.67                     4.37                         3.55

Total cost per unit               9.47                     8.17                           7.35

B: Contribution Format Income statement

                                                          $

Sales Revenue($97000*$9.17) = 889490

Variable Cost($97000*$3.8)  = ( 368600)

Contribution Margin                = 520890

Fixed Cost                                = (380000)

Operating Income                   =   140890

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