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Contribution Format I/S related under Absorption & Variable Costing Zahra, Inc makes a single product - a handmade specialty barbecue grill that it sells for
Contribution Format I/S related under Absorption & Variable Costing Zahra, Inc makes a single product - a handmade specialty barbecue grill that it sells for $ 210. Data for last year's operation follow: Unit in beginning inventory.... 0, unit produced ... 20,000, unit sold ... 17,000, and unit in ending inventory ..... 3,000 Variable cost per unit, direct material....$ 50, direct labor ... $ 80, variable manufacturing overhead ...$ 20, and variable selling & administrative .. $ 10 Fixed cost per year, fixed manufacturing overhead ... $ 700,000, and selling & administrative .... $ 285,000 Required: 1. Assume the company uses variable costin. Compute the unit product for one barbecue grill? 2. Assume that the company uses variable costing. Prepare a contribution format income statementfor the year? 3. What is the company's break even point in terms of the number of barbecue grills sold
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