Problem 7-18 Variable and Absorption Costing Unit Product Costs and Income Statements (L07-1, LO7 2) Hans Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations VaR COPERIRE Dirt labor Variantering overhead Vendine tweed 160,00 During its first year of operations, Hans 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, Haos produced 40,000 units and sold 65.000 units. The selling price of the company's product is $58 per unit, Required: 1. Compute the company's break-even point in unit sales 2. Assume the company uses variable costing Compute the unit product cost for year.year 2nd year 3. Prepare an income statement for year 1 year 2, and year 3. Assume the company es absorption costing Problem 7.18 Variable and Absorption Costing Unit Product Costs and Income Statements (L074, LO7 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: Man tacturing Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year Fixed manufacturing overhead Pised selling and administrative expenses 12 4 5 $950,000 $ 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, Hans produced 40,000 units and sold 65.000 units. The selling price of the company's product is $58 per unit. Required: 1 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. 3. Assume the company uses absorption costing 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: 1. 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. 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. Reg1 Reg 2A Reg 28 Reg Reg 35 Compute the company's break-even point in unit sales Break even unie sales 50 units Req2A > 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. 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 3B Compute the unit product cost for year 1, year 2, and year 3. Assume the company uses variable cost Unit product cost Year 1 $ Year 2 36 $ Year 3 36 $ $ 36 Reg 1 Req 2A Reg 28 Req Req 38 Prepare an income statement for year 1, year 2, and year 3. Assume the company uses variable costing. Year 3 Haas Company Variable Costing Income Statement Year 1 Year 2 Sales Nariable expenses Indirect materials Indirect labor Variable selling and administrative Fixed selling and administrative 0 0 0 0 0 0 Fixed manufacturing overhead Total fixed expenses Net operating income (loss) 0 0 $ 0 $ 0 $ 0 2. Assume the company uses vanable costing: a. Compute the unit product cost for year 1 year and year 3. b. Prepare an income statement for year 1 year and year 3. 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 1 Reg 2A Reg 28 Reg 3A Reg 38 Compute the unit product cost for year 1, year 2, and year 3. Assume the company uses absorption costing. (Roum Intermediate calculations and final answers to 2 decimal places.) Year 1 Year 2 Year 3 Unit product cost