Chuck Wagon Grills, Inc., make a single product a handmade specialty barbecue grill that it sells for $210. Data for last years operations follow:

Units in beginning inventory 0

Units produced 20,000

Units Sold 19,000

Units in ending inventory 1,000

Variable Costs per unit:

Direct Materials $50

Direct Labor $ 80

Variable Manufacturing overhead $20

Variable selling and administrative $10

Total variable cost per unit $160

Fixed Costs:

Fixed Manufacturing overhead $700,000

Fixed Selling and administrative $285,000

Total Fixed Costs $985,000

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 last year.

3. what is the companys break even point in terms of barbecue grills sold?

Ch 7 ExercisesiProblems Chuck Wagon Grills, Inc., makes a single product-a handmade specialty for last year's operations follow: barbecue g Units in beginning inventory Units produced Units sold 2e,000 19,ee0 Units in ending inventory Variable costs per unit: 50 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit 20 160 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative Total fixed costs s 7ee,eee 285,009 $ 985,0ee Required: 1. Assume that the company uses variable costing. Compute the unit product cost for on 2. Assume that the company uses variable costing. Prepare a contribution format incom 3. What is the company's break-even point in terms of the number of barbecue grills sole