Foxwood Company is a metal- and woodcutting manufacturer, selling products to the home- construction market. Consider the following data for 2014 (in thousands): Sandpaper $ 2 Materials-handling costs 70 Lubricants and coolants 5 Miscellaneous indirect manufacturing labor 40 Direct manufacturing labor 300 Direct materials inventory, 1/1/2014 40 Direct materials inventory, 12/31/2014 50 Finished goods inventory, 1/1/2014 100 Finished goods inventory, 12/31/2014 150 Work-in-process inventory, 1/1/2014 10 Work-in-process inventory, 12/31/2014 14 Plant-leasing costs 54 Depreciation: plant equipment 36 Property taxes on plant equipment 4 Fire insurance on plant equipment 3 Direct materials purchased 460 Revenues 1,360 Marketing promotions 60 Marketing salaries 100 Distribution/shipping costs 70 Customer service costs 100 1. Prepare an income statement with a separate supporting schedule of costs of goods manufactured. 2. Suppose that both the direct material costs and the plant-leasing costs are for the production of 900,000 units. What is the direct material cost of each unit produced? What is the plant-leasing cost per unit? Assume that the plant-leasing cost is a fixed cost. 3. Suppose Foxwood manufactures 1,000,000 units next year. Repeat the computation in requirement 2 for direct materials and plant-leasing costs. 4. As a management consultant, explain to the company president why the unit cost for direct materials did not change in requirements 2 and 3 but the unit cost for plant-leasing costs did change.