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		10,200
Units sold		8,300
Units in ending inventory		1,900
Variable costs per unit:
Direct materials	$	80
Direct labor		40
Variable manufacturing overhead		10
Variable selling and administrative		30
Total variable cost per unit	$	160
Fixed costs:
Fixed manufacturing overhead	$	150,000
Fixed selling and administrative		1,040,000
Total fixed costs	$	1,190,000

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? ____________________________________________________________________________________________

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

Unit product cost .

_____________________________________________________

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

Chuck Wagon Grills, Inc.
Variable Costing Income Statement

___________________________________________________

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

Break-even point

units