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Wave Runners is a boat rental business that has the following costs over the relevant...

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Question

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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