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Waterloo Storage Products makes a four-drawer plastic storage cabinet on casters meant for use in garages and workshops. Each cabinet sells for $44. Data for

Waterloo Storage Products makes a four-drawer plastic storage cabinet on casters meant for use in garages and workshops. Each cabinet sells for $44. Data for last years operations follow:

Units in beginning inventory 0
Units produced 23,600
Units sold 20,800
Units in ending inventory 2,800
Variable costs per unit:
Direct materials $ 10
Direct labour 12
Variable manufacturing overhead 4
Variable selling and administrative 6
Total variable cost per unit $ 32
Fixed costs:
Fixed manufacturing overhead $ 78,500
Fixed selling and administrative 113,500
Total fixed costs $ 192,000

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.

3.

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

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