Problem $6-18($Static$)$ Variable and Absorption Costing Unit Product Costs and Income Statements $[$LO$61,$ LO$6-2]$

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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

Direct labor $$20$

Variable manufacturing overhead $$12$

Variable selling and administrative $$44$

Fixed costs per year:

Fixed selling and admin$$strative expenses $$240,000$

During its first year of operations, Haas produced $60,000$ units and sold $60,000$ units. During its second year of operations, it produced $75,000$ units and sold $50,000$ units. In its third year, Haas produced $40,000$ units and sold $65,000$ units. The selling price of the company's product is $$58$ per unit.

Required:

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

Assume the compan 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 $3.$

Answer is not complete.