Wave Runners is a boat rental business that has the following costs over the relevant...
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Accounting
Wave Runners is a boat rental business that has the following costs over the relevant range of 20,000 to 26,000 operating hours for its boats:
Required:
1. Complete the schedule of the companys total and unit costs. (Round "Cost per unit" answers to 2 decimal places.)
Operating Hours
20,000
22,000
24,000
26,000
Total costs:
Variable costs
$98,000
Fixed costs
3,946,800
Total costs
$4,044,800
$0
$0
$0
Cost per unit:
Variable cost
Fixed cost
Total cost per hour
$0.00
$0.00
$0.00
$0.00
2. Assume that Wave Runners rents it boats for $184 per hour and had 23,000 hours of rentals last year. Prepare a contribution format income statement for the year.
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