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		10,000
Units sold		8,000
Units in ending inventory		2,000
Variable costs per unit:
Direct materials		$ 60
Direct labor		40
Variable manufacturing overhead		10
Variable selling and administrative		30
Total variable cost per unit		$ 140
Fixed costs:
Fixed manufacturing overhead	$	230,000
Fixed selling and administrative		160,000
Total fixed costs	$	390,000

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
Variable expenses:
Fixed expenses:

3.

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

Break-even point

units