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Chuck Wagon Grills, Incorporated, makes a barbecue grill it sells for $210. Data for last years operations follow:

Units in beginning inventory	0
Units produced	26,400
Units sold	22,200
Units in ending inventory	4,200
Variable costs per unit:
Direct materials	$ 50
Direct labor	80
Variable manufacturing overhead	20
Variable selling and administrative	10
Total variable cost per unit	$ 160
Fixed costs:
Fixed manufacturing overhead	$ 924,000
Fixed selling and administrative	333,000
Total fixed costs	$ 1,257,000

Required:

1. Assume the company uses variable costing. Compute the unit product cost for one barbecue grill.
2. Assume the company uses variable costing. Prepare a contribution format income statement for last year.
3. How many barbecue grills must be sold to break even?

Complete this question by entering your answers in the tabs below.

• Required 1
• Required 2
• Required 3

Assume the company uses variable costing. Compute the unit product cost for one barbecue grill.

Unit product cost

Required 1

• Required 2
• Required 3

Assume the company uses variable costing. Prepare a contribution format income statement for last year.

Chuck Wagon Grills, Incorporated
Variable Costing Income Statement

How many barbecue grills must be sold to break even?

Break-even point

units