Chapter 1, Problem 11E

EXERCISE 1—11 Cost Behavior; Contribution Format Income Statement LO1−4, LO1−6

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:

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

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 price of $16 per unit. Prepare a contribution format income statement for the year.