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

Units in beginning inventory0

Units produced10,200

Units sold8,500

Units in ending inventory1,700

Variable costs per unit:

Direct materials$80

Direct labor20

Variable manufacturing overhead10

Variable selling and administrative30

Total variable cost per unit$140

Fixed costs:

Fixed manufacturing overhead$190,000

Fixed selling and administrative770,000

Total fixed costs$960,000

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 contribution format income statement for last year.

3. What is the company's break-even point regarding the number of barbecue grills sold?