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Chuck Wagon Grills, Inc., makes a single producta handmade specialty barbecue grill that it sells for $200. Data for last years operations follow:

Units in beginning inventory		0
Units produced		9,900
Units sold		8,300
Units in ending inventory		1,600
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		250,000
Total fixed costs	$	420,000

Required:

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

	Unit product cost 2. Assume that the company uses variable costing. Prepare a contribution format income statement for the year. Chuck Wagon Grills, Inc. Variable Costing Income Statement Variable expenses: Fixed expenses:

3. What is the companys break-even point in terms of the number of barbecue grills sold?

Break-even point

units

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