Problem 7-18 Variable and Absorption Costing Unit Product Costs and Income Statements (L07-1, 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: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $ $ $ $ 29 21 9 3 $ 420,000 $ 180,000 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 $72 per unit. Reg 1 Req 2A Req 2B Req 3A Reg 3B Prepare an income statement for Year 1, Year 2, and Year 3. Assume the company uses absorption costing. (Round your intermediate calculations to 2 decimal places.) Haas Company Absorption Costing Income Statement Year 1 Year 2 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income (loss) 4,320,000 3,960,000 360,000 360,000 S 0 3,600,000 3,230,000 370,000 330,000 $ 40,000 Year 3 $ 4,680,000 4,395,000 285,000 1,025,000 $ (740,000)