Waterloo Storage Products makes a four-drawer plastic storage cabinet on casters meant for use in garages and workshops. Each cabinet sells for $40. Data for last years operations follow:

Units in beginning inventory		0
Units produced		23,800
Units sold		20,900
Units in ending inventory		2,900
Variable costs per unit:
Direct materials	$	9
Direct labour		11
Variable manufacturing overhead		3
Variable selling and administrative		5
Total variable cost per unit	$	28
Fixed costs:
Fixed manufacturing overhead	$	78,000
Fixed selling and administrative		113,000
Total fixed costs	$	191,000

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.

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