CompuDesk, Inc., makes an oak desk specially designed for personal computers. The desk sells for $195. Data for last year's operations follow:
Requirement 1:
Assume that the company uses variable costing. Compute the unit product cost for one computer desk.
Unit product cost = $_________
Requirement 2:
Assume that the company uses variable costing. Prepare a contribution format income statement for the year. (Fill in grey area)
Requirement 3:
What is the company’s break-even point in terms of units sold?
Break-even point = _________ units.