[The following information applies to the questions displayed below.]

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	20,800
Units sold	19,400
Units in ending inventory	1,400
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	$ 728,000
Fixed selling and administrative	291,000
Total fixed costs	$ 1,019,000

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

Unit product cost

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