The following data is available for Crater Corporations North American division for the years 2018 and 2019. During these years there were no inventories in the system.

	2019				2018
Production quantity		53,000				57,000
Number of customers		13,200				12,300
Revenues	$	24,500,000			$	25,940,000
Expenses
Direct materials & components	$	3,219,500			$	3,552,700
Direct production wages (1)		1,463,600				1,606,200
Production supervisory salaries		267,900				244,600
Salaries paid to sales representatives (2)		587,500				609,100
Advertising		685,700				578,800
Insurance (3)		120,870				115,800
Building rent (4)		265,140				263,300
Other salaries (5)		1,173,000				1,245,000
Honorarium to the members of the board		436,700				436,700
Production quality control (6)		132,600				137,820
Market research		347,760				304,720
Depreciation (7)		1,329,300				1,171,500
Facilities management (8)		885,530				747,500
Legal		689,500				622,100
Personnel department		197,800				195,500
Utilitiesproduction (9)		859,100				769,200
Utilitiesother (10)		366,840				308,000
Customer service (11)		920,000				927,200
	$	13,948,340			$	13,835,740

Note:

1. Paid on the basis of production quantity
2. Ten representatives @ $22,000 per person + 1.5% of sales revenue
3. Manufacturing - 60%; remaining - general liability
4. Manufacturing - 70%; Marketing - 10%; remaining for Administration
5. Manufacturing - 40%; Marketing - 25%; remaining for Administration
6. Fixed - 30%
7. Manufacturing - 70%; Sales & Marketing - 10%; remaining for Administration (all straight line)
8. Factory maintenance - 40%; General maintenance - 60%
9. Variable - 30%
10. Equally divided between Sales & Marketing and Administration; variable - 35%
11. Fixed - 10%

Required: 1. Classify the expense items by behaviour (based on the number of units produced/sold) and by function (manufacturing, sales/marketing, and administration). Write the amount for each item using 2019 data.

2-a. What were the total amounts for product costs and period costs during 2019?

2-b. Classify the product costs as direct or indirect.

3-a. Prepare an income statement in good form for the year 2019.

3-b. Compute the gross margin per unit for the year. (Round your answer to 2 decimal places.)