VERCISE 3-14 Variable Costing Unit Product Cost and Income Statement: Break-Even (L06-1, L00-4 Chuck Wagon Grills, Inc., makes a single product-a handmade specialty barbecue grill that it calls for $210. Data for last year's operations follow: 20,000 19,000 1,000 Units in beginning inventory Units produced .. Units sold Units in ending inventory ....... Variable costs per unit: Direct materials Direct labor .......... Variable manufacturing overhead ........ Variable selling and administrative .. Total variable cost per unit ...... $ 50 ....... $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 the year. 3. What is the company's break-even point in terms of the number of barbecue grills sold