Waterloo Storage Products makes a four-drawer plastic storage cabinet on casters meant for use in garages and workshops. Each cabinet sells for $49. Data for last years operations follow:

Units in beginning inventory		0
Units produced		22,400
Units sold		20,200
Units in ending inventory		2,200
Variable costs per unit:
Direct materials	$	11
Direct labour		13
Variable manufacturing overhead		5
Variable selling and administrative		7
Total variable cost per unit	$	36
Fixed costs:
Fixed manufacturing overhead	$	81,500
Fixed selling and administrative		116,500
Total fixed costs	$	198,000

Required:

1.

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

Unit product cost

$29

2.

Assume that the company uses variable costing. Prepare a contribution format income statement for the year.

Variable Costing Income Statement
Sales
Variable expenses:
Variable cost of goods sold:
	0
	0
		0
Fixed expenses:
Cost of goods sold
		0

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