Chuck Wagon Grills Inc

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:

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 the year.

3.         What is the company’s break-even point in terms of the number of barbecue grills sold?

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