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Tutorial   13124

Parker Company manufactures and sells a single product. Required: 1. A partially completed schedule of the company\'s total and per unit costs over ...

Question:

Parker Company manufactures and sells a single product.

Required:

1.            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. Complete the schedule of the company\\\'s total and unit costs.

                                 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                            

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.