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Chuck Wagon Grills, Inc., makes a single producta handmade specialty barbecue grill that it sells for $300. Data for last years operations follow: Units in

Chuck Wagon Grills, Inc., makes a single producta handmade specialty barbecue grill that it sells for $300. Data for last years operations follow:

Units in beginning inventory 0
Units produced 9,900
Units sold 8,800
Units in ending inventory 1,100
Variable costs per unit:
Direct materials $ 60
Direct labor 20
Variable manufacturing overhead 10
Variable selling and administrative 30
Total variable cost per unit $ 120
Fixed costs:
Fixed manufacturing overhead $ 180,000
Fixed selling and administrative 720,000
Total fixed costs $ 900,000

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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Complete this question by entering your answers in the tabs below. Required 1Required 2Required 3 Assume that the company uses variable costing. Compute the unit product cost for one barbecue grill Unit product cost Required1 Required 2>

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