Question
Chuck Wagon Grills, Inc., makes a single producta handmade specialty barbecue grill that it sells for $300. Data for last year's operations follow: Units in
Chuck Wagon Grills, Inc., makes a single producta handmade specialty barbecue grill that it sells for $300. Data for last year's operations follow:
Units in beginning inventory0Units produced9,800Units sold8,300Units in ending inventory1,500Variable costs per unit:Direct materials$80Direct labor20Variable manufacturing overhead10Variable selling and administrative30Total variable cost per unit$140Fixed costs:Fixed manufacturing overhead$150,000Fixed selling and administrative1,290,000Total fixed costs$1,440,000
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. Create contribution format income statement for last year.
3. What is the company's break-even point in terms of the number of barbecue grills sold?
Assume that the company uses variable costing. Compute the unit product cost for one barbecue grill. Unit Product Cost_________
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