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Question Parker Company manufactures and sells a single product. A partially completed schedule of t

Question Parker Company manufactures and sells a single product. A partially completed schedule of t

Parker Company manufactures and sells a single product. A partially completed schedule of the company’s total and per unit costs over a relevant range of 60,000 to 100,000 units produced and sold each year is given below:

Units Produced and Sold

      60,000

      80,000

      100,000

  Total costs:

     Variable costs

       $ 150,000 

$   

$   

     Fixed costs

$ 360,000 

 

 

  Total costs

       $ 510,000 

$   

$   

  Cost per unit:

     Variable cost

$  

$   

$   

     Fixed cost

 

 

 

  Total cost per unit

$  

$   

Complete the schedule of the company’s total and unit costs above/

Assume that the company produces and sells 90,000 units during the year at the selling price of $7.50 per unit. Prepare a contribution format income statement for the year.

 

Units Produced and Sold

 

 

      60,000

      80,000

      100,000

  Total costs:

 

 

 

 

     Variable costs

 

       $ 150,000 

$   

$   

     Fixed costs

 

$ 360,000 

 

 

 

 

 

 

 

  Total costs

 

       $ 510,000 

$   

$   

 

 

 

 

 

  Cost per unit:

 

 

 

 

     Variable cost

 

$  

$   

$   

     Fixed cost

 

 

 

 

 

 

 

 

 

  Total cost per unit

 

$  

$   

 
manish jayant 22-Apr-2020

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