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19. Chuck Wagon Grills, Incorporated, makes a single producta handmade specialty barbecue grill that it sells for $210. Data for last years operations follow:

Units in beginning inventory	0
Units produced	20,000
Units sold	19,000
Units in ending inventory	1,000
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	$ 700,000
Fixed selling and administrative	285,000
Total fixed costs	$ 985,000

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

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

Chuck Wagon Grills, Incorporated
Variable Costing Income Statement
Sales		$3,990,000
Variable expenses:
Variable selling and administrative expenses
Variable cost of goods sold
		0
Contribution margin		3,990,000
Fixed expenses:
	$0
Fixed manufacturing overhead	700,000
	285,000
	0	985,000
Net operating loss		$3,005,000