Please show all your work and show your steps. Clearly explain your answer and the steps you take. If writing, please write neatly, no cursive, and write in a linear fashion.

PLEASE ENSURE YOU ONLY USE THE CORRECT NUMBER OF SPACES SHOWN IN THE INCOME STATEMENT

Waterloo Storage Products makes a four-drawer plastic storage cabinet on casters meant for use in garages and workshops. Each cabinet sells for $35. Data for last year's operations follow: Units in beginning inventory Units produced Units sold Units in ending inventory 0 25,000 21,500 3,500 $ Variable costs per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative 8 10 2 4 Total variable cost per unit $ 24 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $ 75,000 110,000 Total fixed costs $185,000 Required: 1. Assume that the company uses variable costing. Compute the unit product cost for one storage cabinet. Unit product cost 2. Assume that the company uses variable costing. Prepare a contribution format income statement for the year. (Do not leave any empty spaces; input a 0 wherever it is required.) Variable Costing Income Statement Variable expenses: Variable cost of goods sold: Fixed expenses