Variable Costing Unit Product Cost and Income Statement; Break-Even [LO1, LO2]

CompuDesk, Inc., makes an oak desk specially designed for personal computers. The desk sells for $200. Data for last year’s operations follow:

Required:
1. Assume that the company uses variable costing. Compute the unit product cost for one computer de sk.
2. Assume that the company uses variable costing. Prepare a contribution format income statement for the year.
3. What is the company’s break-even point in terms of units sold?

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Units in beginning inventory. 0 Units produced.. 10,000 Units sold... 9,000 Units in ending inventory.. 1,000 Direct materials. Variable costs per unit: 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... $ 60 30 10 20 $120 $300,000 450,000 $750,000