Waterloo Storage Products makes a four-drawer plastic storage cabinet on casters meant for use in garages and workshops. Each cabinet sells for $36. Data for last years operations follow:

Units in beginning inventory		0
Units produced		23,000
Units sold		20,500
Units in ending inventory		2,500
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	$	80,000
Fixed selling and administrative		115,000
Total fixed costs	$	195,000

Required:

1. Assume that the company uses variable costing. Compute the unit product cost for one storage cabinet.

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.)

3. What is the companys break-even point in terms of units sold? (Round your answer to the nearest whole number.)