Discon Corporation manufactures a popular doll called Teardrops. Last year the company started with 11,200 dolls, produced 265,000 dolls, and ended the year with 9,200 dolls. Each doll was sold for $22. The actual unit cost for Teardrops is given below:

Direct material	$	2.15
Direct labour		0.50
variable overhead		2.50
Fixed overhead		7.85
Total unit cost	$	13.00

The only selling expenses were a commission of $3 per unit sold and advertising amounting to $362,000. Administrative expenses, all fixed, equalled $282,000. There were no beginning and ending work-in-process inventories.

Required: 1. Prepare an income statement.

2. Calculate the following per unit costs: (Round your answers to 2 decimal places.)