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 FOLLOW ALL INSTRUCTIONS. PLEASE ENSURE YOU ONLY USE THE CORRECT NUMBER OF SPACES SHOWN IN THE INCOME STATEMENT.

PLEASE CORRECT THE FOLLOWING ME FOR BELOW AND EXPLAIN

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 $ 20 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 Sales $ 752,500 Variable expenses: Variable cost of goods sold: Beginning inventory $ 387,000 x Less: Variable manufacturing costs x 43,000 X Goods available for sale 430,000 Less: Ending inventory x Variable cost of goods sold 430,000 Variable selling and administrative x 430,000 Contribution margin 322,500 Fixed expenses: Fixed manufacturing overhead 75,000 Fixed selling and administrative 110,000 185,000 Operating profit 137,500 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted. 3. What is the company's break-even point in terms of units sold? (Round your answer to the nearest whole number.) Break-even units sales 16,818 units