Exercise 8-5 Variable Costing Unit Product Cost and Income Statement; Break-Even [LO1, LO2] 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 8 Variable costs per unit: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative 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 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 0 wherever it is required.) Variable Costing Income Statement Variable expenses Variable cost of goods sold: 0 0 0 0 Fixed expenses 0 $ 0 3. What is the company's break-even point in terms of units sold? (Round your answer to the nearest whole number.) Break-even units sales units