Waterloo Storage Products makes a four-drawer plastic storage cabinet on casters meant for use in garages and workshops. Each cabinet sells for $38. Data for last year's operations follow: Units in beginning inventory Units produced Units sold Units in ending inventory 21,000 19,500 1,500 $ Variable costs per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative 8 10 2 4 Total variable cost per unit $ 24 Fixed costs: Fixed manufacturing overhead Fixed selling and administrative $ 85,000 120,000 Total fixed costs $205,000 Required: 1. Assume that the company uses variable costing. Compute the unit product cost for one storage cabinet. Unit product cost $ 20 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 O wherever it is required.) Variable Costing Income Statement $ 741,000 Sales Variable expenses Variable cost of goods sold: Add: Variable manufacturing costs 0 0 0 741,000 Contribution margin Fixed expenses Fixed manufacturing overhead Fixed selling and administrative Operating profit 85,000 120,000 205,000 $ 536,000