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Chuck Wagon Grills, Inc., makes a single producta handmade specialty barbecue grill that it sells for $200. Data for last years operations follow: Units in

Chuck Wagon Grills, Inc., makes a single producta handmade specialty barbecue grill that it sells for $200. Data for last years operations follow:

Units in beginning inventory 0
Units produced 9,600
Units sold 8,700
Units in ending inventory 900
Variable costs per unit:
Direct materials $ 80
Direct labor 40
Variable manufacturing overhead 10
Variable selling and administrative 30
Total variable cost per unit $ 160
Fixed costs:
Fixed manufacturing overhead $ 180,000
Fixed selling and administrative 180,000
Total fixed costs $ 360,000

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 the number of barbecue grills sold?

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