Question: Problem 6-18 Variable and Absorption Costing Unlt Product Costs and Income Statements [LO6-1, LO6-2 Haas Company Variable Costing Income statement Year 1 Year 2 Year

 Problem 6-18 Variable and Absorption Costing Unlt Product Costs and Income

Problem 6-18 Variable and Absorption Costing Unlt Product Costs and Income Statements [LO6-1, LO6-2 Haas Company Variable Costing Income statement Year 1 Year 2 Year 3 Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations arable epenees Variable costs per unit: Manufacturing Direct materials 520 312 54 52 Direct labor Variable manufacturing overhead Variable selling and administrative Total varable expenee6 Foxed costs per year Foxed manufacturing overhead Foxed selling and administrative expenses $9e0,000 5240,000 Flved expenees During its first year of operations, Haas produced 80,000 units and sold 80,000 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 05,000 units. The selling price of the company's product is $58 per unit Total Toed epenees Net operating Income(o8s) Required: 1. Compute the company's break-even point in units sold ven unit sales units 3. Assume the company uses absomption costing a. Compute the unitproduct cost for year 1, year 2, and year 3. (Round your Intermediate and final answers to 2 decimal places) 2. Assume the company uses variable costing: Unt prooucr cos a. Compute the unit product cost for year 1, year 2, and year 3. Year 1 Year 3 Unit product cost b Prepare an norme stateret toryear 1year 2and year 3 (Round your intermediate calculations to 2 decimal places Haas ADsorption Costing income statement Year 1 Year 2 Year 3 Net operating Income (o8s)

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