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

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[The following information applies to the questions displayed below.]

Chuck Wagon Grills, Inc., makes a single producta handmade specialty barbecue grill that it sells for $210. Data for last years operations follow:

Units in beginning inventory		0
Units produced		24,400
Units sold		21,200
Units in ending inventory		3,200
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	$	854,000
Fixed selling and administrative		318,000
Total fixed costs	$	1,172,000

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 companys break-even point in terms of the number of barbecue grills sold?