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Chuck Wagon Grills, Inc., makes a single product - a handmade specialty barbecue grill that it sells for $210. Data for last year's operations follow:
Chuck Wagon Grills, Inc., makes a single product - a handmade specialty barbecue grill that it sells for $210. Data for last year's 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 admin. 10 Total variable cost per unit $160 Fixed Costs: Fixed Manufacturing Overhead $700,000 Fixed Selling and Admin. 285,000 Total Fixed Costs $985,000 1. Assume the company uses variable costing. Compute the unit product cost for one barbecue grill. 2. Assume 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 of the number of barbecue grills sold
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