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Chuck Wagon Grills, Inc., makes a single product-a handmade specialty barbecue grill that it sells for $210. Data for last year's operations follow: Units in
Chuck Wagon Grills, Inc., makes a single product-a handmade specialty barbecue grill that it sells for $210. Data for last year's operations follow: Units in begiming inventory Units produced 20, 000 19, 000 1, 000 Units sold Units in ending inventory Variable costs per umit Direct materials 50 Direct labor Variable maufacturing overhead Variable selling and administrative 80 20 160 Total variable cost per unit Fixed costs $700, 000 285, 000 Fixed manufacturing overhead Fixed selling and administrative $ 985, 000 Total fixed costs 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 company's break-even point in terms of the number of barbecue grills sold? Assume that the company uses variable costing. Prepare a contribution format income statement for last year. Chuck Wagon Grills, Inc. Variable Costing Income Statement Sales $ 3,990,000 Variable expenses Variable cost of goods sold 3,990,000 $ 3,990,000
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