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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 59,000 to 99,000 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 89,000 units during the year at a selling price of $11.10 per unit. Prepare a contribution format income statement for the year.
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Variable cost is the cost which depends on the level of production.
Fixed cost is the cost which is fixed and does not change with the change in the level of production.
Contribution is the difference between sales and variable cost.
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