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 10,400 Units sold 8,400 Units in ending inventory 2,000 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$200,000 Fixed selling and administrative 880,000 Total fixed costs$1,080,000

Required:

1.	Assume that the company uses variable costing. Compute the unit product cost for one barbecue grill.

Unit product cost

2.

Assume that the company uses variable costing. Prepare a contribution format income statement for the year.

Chuck Wagon Grills, Inc.
Variable Costing Income Statement
Sales
Variable expenses:
Variable cost of goods sold
Variable selling and administrative
Fixed expenses:
Fixed manufacturing overhead
Fixed selling and administrative
Net operating income

3.

What is the companys break-even point in terms of the number of barbecue grills sold?

Break-even point

units