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# CompuDesk, Inc.

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CompuDesk, Inc., makes an oak desk specially designed for personal computers. The desk sells for \$200. Data for last year's operations follow:

Units Beginning Inventory 0
Units Produced 10,000
Units Sold 9,000
Units in Ending Inventory 1,000

Variable Costs per Unit:
Direct Materials \$60
Direct Labor \$30
Total Variable Cost per Unit \$120

Fixed Costs:
Total Fixed Costs \$750,000

1. Assume the company uses variable costing. Compute the unit cost for one computer desk.

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 units sold?

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CompuDesk, Inc., makes an oak desk specially designed for personal computers. The desk sells for \$200. Data for last year's operations follow:

Units Beginning Inventory 0
Units Produced 10,000
Units Sold 9,000
Units in Ending Inventory 1,000

Variable Costs per Unit:
Direct Materials \$60
Direct Labor \$30