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  3. chuck wagon grills, inc., makes a single producta

Chuck Wagon Grills, Inc., makes a single producta handmade specialty barbecue grill that it sells...

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Accounting

Chuck Wagon Grills, Inc., makes a single producta handmade specialty barbecue grill that it sells for $300. Data for last years operations follow:

Units in beginning inventory 0
Units produced 10,300
Units sold 8,000
Units in ending inventory 2,300
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 $ 180,000
Fixed selling and administrative 620,000
Total fixed costs $ 800,000

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

Assume that the company uses variable costing. Prepare a contribution format income statement for last year.
Chuck Wagon Grills, Inc.
Variable Costing Income Statement

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

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