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 years operations follow:

Units in beginning inventory		0
Units produced		25,000
Units sold		21,500
Units in ending inventory		3,500
Variable costs per unit:
Direct materials	$	8
Direct labour		10
Variable manufacturing overhead		2
Variable selling and administrative		4
Total variable cost per unit	$	24
Fixed costs:
Fixed manufacturing overhead	$	75,000
Fixed selling and administrative		110,000
Total fixed costs	$	185,000

Assume that the company uses absorption costing.

Required:

1. Compute the unit product cost for one storage cabinet.

2. Prepare an income statement for the year. (Do not leave any empty spaces; input a 0 wherever it is required.)