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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... 0
units produced... 20,000
units sold... 19,000
units in ending inventory... 1,000
variable cost per unit:
direct materials... $ 50
direct labor... 80
variable manufacturing overhead... 20
variable selling and administrative... 10
total variable cost per unit... $160
fixed cost:
fixed manufacturing overhead... 700,000
fixed selling and administrative... 285,000
total fixed costs... 985,000
Required:
1. assume that the company uses variable costing. Compute the unit produced cost for one barbecue grill.
2.assume that the company uses variable costing.prepare a contribution format income statement for the year
3.what is the company's break-even point in terms of the number of barbecue grills sold.