Cost Behavior; Contribution Format Income Statement [LO3, LO5] 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 . . . . . . . . ? ? ? ?? ??
Required:
1. Complete the schedule of the company’s total and unit costs.
2. 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.