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SB Exercise $6-14$ through Exercise $6-15($Algo$)$

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Chuck Wagon Grills, Incorporated, 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 $0$

Units produced $23,600$

Units sold $20,800$

Units in ending inventory $2,800$

Variable costs per unit:

Direct materials $ $50$

Direct labor $80$

Variable manufacturing overhead $20$

Variable selling and administrative $10$

Total variable cost per unit $ $160$

Fixed costs:

Fixed manufacturing overhead $ $826,000$

Fixed selling and administrative $312,000$

Total fixed costs $ $1,138,000$

Exercise $6-14($Algo$)$ Variable Costing Unit Product Cost and Income Statement; Break$-$Even Analysis $[$LO$61,$ LO$62]$

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?