Problem $7-18$ Variable and Absorption Costing Unit Product Costs and Income Statements $[$LO$7-1,$ LO$72]$

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

$\backslash$table$[[$Variable costs per unit:$],[$Manufacturing:$],[$Direct materials,$$,26],[$Direct labor,$$,],[$Variable manufacturing overhead,$$,6],[$Variable selling and administrative,$$,3],[$Fixed costs per year:$],[$Fixed manufacturing overhead,$$,390,000],[$Fixed selling and administrative expenses,$$2,150,000]]$

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 $$62$ per unit.

Required:

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

$2$ 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.

Req $1$

Req $2A$

Req$2B$

Req$3A$

Req $3$B

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

Break$-$even unit sales

units