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CompuDesk, Inc., makes an oak desk specially designed for personal computers. The desk sells for $200. Data for last years operations follow: Units in beginning
CompuDesk, Inc., makes an oak desk specially designed for personal computers. The desk sells for $200. Data for last years operations follow: |
Units in beginning inventory | 0 | |
Units produced | 9,600 | |
Units sold | 8,300 | |
Units in ending inventory | 1,300 | |
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 | $ | 220,000 |
Fixed selling and administrative | 0 | |
| | |
Total fixed costs | $ | 220,000 |
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Required: |
1. | Assume that the company uses variable costing. Compute the unit product cost for one computer desk. |
Unit product cost | $ |
2. | Assume that the company uses variable costing. Prepare a contribution format income statement for the year. (Input all amounts as positive values except losses which should be indicated by a minus sign.) |
Variable Costing Income Statement | ||
$ | ||
Variable expenses: | ||
$ | ||
| | |
Fixed expenses: | ||
| | |
$ | ||
| ||
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3. | What is the companys break-even point in terms of units sold? (Round your answer to the nearest whole number.) |
Break-even point | units |
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