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Chuck Wagon Grills, Inc., makes a single producta handmade specialty barbecue grill that it sells...

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Accounting

Chuck Wagon Grills, Inc., makes a single producta handmade specialty barbecue grill that it sells for $300. Data for last years operations follow:

Units in beginning inventory 0
Units produced 10,200
Units sold 8,100
Units in ending inventory 2,100
Variable costs per unit:
Direct materials $ 60
Direct labor 20
Variable manufacturing overhead 10
Variable selling and administrative 30
Total variable cost per unit $ 120
Fixed costs:
Fixed manufacturing overhead $ 170,000
Fixed selling and administrative 730,000
Total fixed costs $ 900,000

Required:
1.

Assume that the company uses variable costing. Compute the unit product cost for one barbecue grill.

2.

Assume that the company uses variable costing. Prepare a contribution format income statement for the year.

3. What is the companys break-even point in terms of the number of barbecue grills sold?

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