Variable Costing Unit Product Cost and Income Statement; Break-Even
CompuDesk, Inc., makes an oak desk specially designed for personal computers. The desk sells for $200. Data for last year's operations follow:
Required:
- Assume that the company uses variable costing. Compute the unit product cost for one computer desk.
- Assume that the company uses variable costing. Prepare a contribution format income statement for the year.
- What is the company's break-even point in terms of units sold?