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Chuck Wagon Grills, Incorporated, makes a single producta handmade specialty barbecue grill that it sells for $ Data for last years operations follow:
Units in beginning inventory
Units produced
Units sold
Units in ending inventory
Variable costs per unit:
Direct materials $
Direct labor
Variable manufacturing overhead
Variable selling and administrative
Total variable cost per unit $
Fixed costs:
Fixed manufacturing overhead $
Fixed selling and administrative
Total fixed costs $
Required:
Assume that the company uses variable costing. Compute the unit product cost for one barbecue grill.
Assume that the company uses variable costing. Prepare a contribution format income statement for last year.
What is the companys breakeven point in terms of the number of barbecue grills sold?
