Complete this question by entering your answers in the tabs below.Required 1Required 2Required 3Assume that the company uses variable costing. Prepare a contribution format income statement for last year.Chuck Wagon Grills, Inc.Variable Costing Income StatementSales$ 1,740,000Variable expenses:Variable cost of goods soldVariable selling and administrative expenses261,0001,479,000Contribution marginFixed expenses:(170,000)Fixed manufacturing overhead(160,000)Fixed selling and administrative expenses(330,000)$ 1,149,000Net operating income< Required 1Required 3 > Exercise 7-14 Variable Costing Unit Product Cost and Income Statement; Break-Even Analysis [LO7-1,LO7-2]Chuck Wagon Grills, Inc., makes a single product-a handmade specialty barbecue grill that it sells for $200. Data for last year'soperations follow:Units in beginning inventoryUnits producedUnits soldUnits in ending inventoryVariable costs per unit:Direct materialsDirect labor9,5008,7008002$Variable manufacturing overheadVariable selling and administrative80201030Total variable cost per unit140Fixed costs:Fixed manufacturing overheadFixed selling and administrativeTotal fixed costs$ 170,000160,000$ 330,000Required: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?

Solution:- 1)Calculation of the unit product cost for one barbecue grill if company uses variable…

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?

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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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