Please see problem attached
CompuDesk, Inc., makes an oak desk specially designed for personal computers. The desk sells for $195. Data for last year's operations follow:
Units in beginning inventory 0
Units produced 9,900
Units sold 8,000
Units in ending inventory 1,900
Variable costs per unit:
Direct materials $ 61
Direct labor 32
Variable manufacturing overhead 11
Variable selling and administrative 22
Total variable cost per unit $ 126
Fixed manufacturing overhead $ 315,000
Fixed selling and administrative 515,000
Total fixed costs $ 830,000
Assume that the company uses variable costing. Compute the unit product cost for one computer desk.
Unit product cost = $___________________
Assume that the company uses variable costing. Prepare a contribution format income statement for the year.
(Fill in grey area)
Variable Cost of goods sold:
Beginning inventory $
Add: Variable manufacturing costs
Goods available for sale
Less: Ending inventory
Variable cost of goods sold
Variable selling and administrative
Fixed manufacturing overhead
Fixed selling and administrative
Net operating loss $
What is the company's break-even point in terms of units sold?
Break-even point = _________________ units.
The solution explains some calculations relating to variable and absorption costing