exercise 1 - 11 (static) cost behavior; contribution format income statement lo1 - 4, lo1 - 6 harris company…

exercise 1 - 11 (static) cost behavior; contribution format income statement lo1 - 4, lo1 - 6 harris company manufactures and sells a single product. a partially completed schedule of the companys total costs and costs per unit as given in the relevant tab below. 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. required: 1. complete the schedule of the companys total costs and costs per unit as given in the relevant tab below. 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. complete this question by entering your answers in the tabs below. harris company contribution format income statement sales variable expenses contribution margin fixed expense net operating income $ 720,000 $ 360,000 360,000 240,000 120,000

exercise 1 - 11 (static) cost behavior; contribution format income statement lo1 - 4, lo1 - 6 harris company manufactures and sells a single product. a partially completed schedule of the companys total costs and costs per unit as given in the relevant tab below. 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. required: 1. complete the schedule of the companys total costs and costs per unit as given in the relevant tab below. 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. complete this question by entering your answers in the tabs below. harris company contribution format income statement sales variable expenses contribution margin fixed expense net operating income $ 720,000 $ 360,000 360,000 240,000 120,000

Answer

Explanation:

Step1: Calculate sales

Sales = Selling - price per unit×Number of units sold. Given selling - price per unit = $16 and number of units sold = 45000. So, Sales = $16×45000 = $720000.

Step2: Calculate variable expenses

Variable expenses = Sales - Contribution margin. Given Sales = $720000 and Contribution margin = $360000. So, Variable expenses = $720000 - $360000 = $360000.

Step3: Calculate fixed expenses

Fixed expenses = Contribution margin - Net operating income. Given Contribution margin = $360000 and Net operating income = $120000. So, Fixed expenses = $360000 - $120000 = $240000.

Answer:

Sales Variable expenses Contribution margin Fixed expense Net operating income
$720000 $360000 $360000 $240000 $120000