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CompuDesk, Inc., makes an oak desk specially designed for personal computers. The desk sells for $200. Data for last years operations follow:

Units in beginning inventory		0
Units produced		9,600
Units sold		8,300
Units in ending inventory		1,300
Variable costs per unit:
Direct materials	$	80
Direct labor		40
Variable manufacturing overhead		10
Variable selling and administrative		30
Total variable cost per unit	$	160
Fixed costs:
Fixed manufacturing overhead	$	220,000
Fixed selling and administrative		0
Total fixed costs	$	220,000

Required:

1.	Assume that the company uses variable costing. Compute the unit product cost for one computer desk.

Unit product cost

$

2.	Assume that the company uses variable costing. Prepare a contribution format income statement for the year. (Input all amounts as positive values except losses which should be indicated by a minus sign.)

Variable Costing Income Statement
(Click to select) Fixed manufacturing overhead Variable selling and administrative Contribution margin Net operating income (loss) Sales Variable cost of goods sold Fixed selling and administrative		$
Variable expenses:
(Click to select) Sales Contribution margin Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses Net operating income (loss) Variable cost of goods sold	$
(Click to select) Sales Net operating income (loss) Fixed selling and administrative expenses Contribution margin Variable cost of goods sold Variable selling and administrative expenses Fixed manufacturing overhead
(Click to select) Contribution margin Gross margin
Fixed expenses:
(Click to select) Variable selling and administrative expenses Contribution margin Sales Fixed selling and administrative expenses Fixed manufacturing overhead Variable manufacturing overhead Net operating income (loss)
(Click to select) Sales Variable manufacturing overhead Net operating income (loss) Variable selling and administrative expenses Contribution margin Fixed selling and administrative expenses Fixed manufacturing overhead
(Click to select) Net operating loss Net operating income		$

3.	What is the companys break-even point in terms of units sold? (Round your answer to the nearest whole number.)

Break-even point

units

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