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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 beginning inventory Units produced Units sold Units in ending inventory Variable costs per unit 20,000 19,000 1,000 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative $ 50 80 20 Total variable cost per unit 160 Fixed costs Fixed manufacturing overhead Fixed selling and administrative $ 700,000 285,000 Total fixed costs $985,000 Required 1. Assume that the company uses variable costing. Compute the unit product cost for one barbecue grill. 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 company's break-even point in terms of the number of barbecue grills sold? units
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