Suppose that Larimer Company sells a product for $22. Unit costs are as follows:

Direct materials	$1.75
Direct labor	1.40
Variable factory overhead	2.05
Variable selling and administrative expense	1.84

Total fixed factory overhead is $64,654 per year, and total fixed selling and administrative expense is $38,570.

	Required:
1.	Calculate the variable cost per unit and the contribution margin per unit.
2.	Calculate the contribution margin ratio and the variable cost ratio.
3.	Calculate the break-even units.
4.	Prepare a contribution margin income statement at the break-even number of units. Enter all amounts as positive numbers.