Problem $6-18($Algo$)$ Variable and Absorption Costing Unit Product Costs and Income Statements $[$LO$6-1,$ LO$6-2]$

Haas Company manufactures and sells one product. The following information pertains to each of the company$$s first three years of operations:

Variable costs per unit:

Manufacturing:

Direct materials $ $21$

Direct labor $ $13$

Variable manufacturing overhead $ $4$

Variable selling and administrative $ $2$

Fixed costs per year:

Fixed manufacturing overhead $ $330,000$

Fixed selling and administrative expenses $ $150,000$

During its first year of operations, Haas produced $40,000$ units and sold $40,000$ units. During its second year of operations, it produced $55,000$ units and sold $30,000$ units. In its third year, Haas produced $20,000$ units and sold $45,000$ units. The selling price of the company$$s product is $$52$ per unit.

Required:

Compute the company$$s break$-$even point in unit sales.

Assume the company uses variable costing:

Compute the unit product cost for Year $1,$ Year $2,$ and Year $3.$

Prepare an income statement for Year $1,$ Year $2,$ and Year $3.$

Assume the company uses absorption costing:

Compute the unit product cost for Year $1,$ Year $2,$ and Year $3.$

Prepare an income statement for Year $1,$ Year $2,$ and Year $3.$Problem $6-18($Algo$)$ Varlable and Absorption Costing Unit Product Costs and Income Statements $[$LO$6-1,$

LO$6-2]$

Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of

operations:

Variable costs per unit:

Manufacturing:

Direct materials $,$ $ $21$

Direct labor $,$ $ $13$

variable manufacturing overhead is $4$

Variable selling and adninistrative is

Fixed costs per year:

Fixed manufacturing overhead $ $330,000$

Fixed selling and adtinistrative expenses $ $150,000$

During its first year of operations, Haas produced $40,000$ units and sold $40,000$ units. During its second year of operations, it

produced $55\mathrm{.}000$ units and sold $30,000$ units. In its third year, Has produced $20\mathrm{.}000$ units and sold $45\mathrm{.}000$ units. The selling price of

the company's product is $$52$ per unit.

Requlred:

Compute the company's break$-$even point in unit sales.

Assume the company uses variable costing:

a$.$ Compute the unit product cost for Year $1,$ Year $2,$ and Year $3.$

b$.$ Prepare an income statement for Year $1,$ Year $2,$ and Year $3.$

Assume the company uses absorption costing:

a$.$ Compute the unit product cost for Year $1,$ Year $2,$ and Year $3.$

b$.$ Prepare an income statement for Year $1,$ Year $2,$ and Year $3.$

Complete this question by entering your answers in the tabs below.

Reg$2A$

Compute the company's break$-$even point in unit sales.