CompuDesk, Inc., makes an oak desk specially designed for personal computers. The desk sells for $300. Data for last years operations follow:

Units in beginning inventory		0
Units produced		9,700
Units sold		8,900
Units in ending inventory		800
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	$	210,000
Fixed selling and administrative		830,000
Total fixed costs	$	1,040,000

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
(Click to select)Fixed manufacturing overheadFixed selling and administrativeContribution marginVariable cost of goods soldNet operating income (loss)Variable selling and administrativeSales		$
Variable expenses:
(Click to select)SalesVariable cost of goods soldContribution marginVariable selling and administrative expensesNet operating income (loss)Fixed selling and administrative expensesFixed manufacturing overhead	$
(Click to select)Fixed selling and administrative expensesVariable selling and administrative expensesSalesVariable cost of goods soldFixed manufacturing overheadNet operating income (loss)Contribution margin
(Click to select)Contribution marginGross margin
Fixed expenses:
(Click to select)Variable manufacturing overheadSalesNet operating income (loss)Contribution marginVariable selling and administrative expensesFixed manufacturing overheadFixed selling and administrative expenses
(Click to select)Fixed selling and administrative expensesVariable manufacturing overheadVariable selling and administrative expensesSalesNet operating income (loss)Contribution marginFixed manufacturing overhead
(Click to select)Net operating lossNet operating income		$

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