Exercise 3 (Variable Costing Unit Product Cost and Income Statement; Break-even) PC Desk, Inc., makes an oak desk specially designed for personal computers. The desk sells for P2,000. Data for last year's operations follow: Units in beginning inventory... Units produced... Units sold........ Units in ending inventory... 0 10,000 9,000 1,000 Variable costs per unit: Direct materials... Direct labor......... Variable manufacturing overhead. Variable selling and administrative. Total variable cost per unit............ Fixed costs: Fixed manufacturing overhead.. Fixed selling and administrative.. Total fixed costs.. Required: P 600 300 100 200 P1,200 P3,000,000 4,500,000 P7,500,000 1. Assume that the company uses variable costing. Compute the unit product cost for one computer desk. 2. Assume that the company uses variable costing. Prepare an income statement for the year using the contribution format. 3. What is the company's break-even point in terms of units sold?