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

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 0 Units produced 9,700 Units sold 8,800 Units in ending inventory 900 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 130,000 Total fixed costs $ 300,000 Required:

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

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

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

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 company’s break-even point in terms of the number of barbecue grills sold?

Break-even point

units

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ekkarill92 answered 1 year ago

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