EXERCISE 6-14 Variable Costing Unit Product Cost and Income Statement; Break-Even Analysis LO6-1, L06-2 Chuck Wagon Grills, Inc., makes a single product-a handmade specialty barbecue grill that it sells for $210. Data for last year's operations follow: Units in beginning inventory ..... o Units produced ..... 20,000 Units sold 19,000 Units in ending inventory. 1,000 Variable costs per unit: Direct materials ........ Direct labor ....... Variable manufacturing overhead ... Variable selling and administrative ..... Total variable cost per unit ...... $ 50 80 10 $160 Fixed costs: Fixed manufacturing overhead ..... Fixed selling and administrative Total fixed costs $700,000 285,000 $985,000 Required: 1. Assume that the company uses variable costing. Compute the unit product cost for one barbe- cue grill. 2. Assume that the company uses variable costing. Prepare a contribution format income state- ment for last year. 3. What is the company's break-even point in terms of the number of barbecue grills sold? EXERCISE 6-15 Absorptin RCISE 6-15 Absorption Costina I Init Daf