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		24,000
Units sold		21,000
Units in ending inventory		3,000
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	$	77,500
Fixed selling and administrative		112,500
Total fixed costs	$	190,000

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.)