Reference no: EM132522053

Chuck Wagon Grills, Inc., makes a single product-a handmade specialty barbecue grill that it sells for $200. Data for last year's operations follow:

Units in beginning inventory 0Units produced 9,700

Units sold 8,500Units in ending inventory 1,200

Variable costs per unit:

Direct materials $80

Direct labor 20

Variable manufacturing overhead 10

Variable selling and administrative 30

Total variable cost per unit$140

Fixed costs: Fixed manufacturing overhead $170,000

Fixed selling and administrative 160,000

Total fixed costs $330,000

Required:

Question 1. Assume that the company uses variable costing. Compute the unit product cost for one barbecue grill.

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

Question 3. What is the company's break-even point in terms of the number of barbecue grills sold