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Complete this question by entering your answers in the tabs below. Problem 7 - 1 8 Variable and Absorption Costing Unit Product Costs and Income

Complete this question by entering your answers in the tabs below.
Problem 7-18 Variable and Absorption Costing Unit Product Costs and Income Statements [LO7-1, LO7.2]
5
points
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: 21
Direct labor: 13
Variable manufacturing overhead: 4
References
Variable selling and administrative: 2
Complete this question by entering your answers in the tabs below.
Compute the unit product cost for Year 1, Year 2, and Year 3. Assume the company uses variable costing.
\table[[,Year 1,Year 2,Year 3],[Unit product cost,,,],[,,,]]
Fixed costs per year:
Fixed manufacturing overhead $330,000
Fixed selling and administrative expenses $150,000
During its first year of operations, Haas produced 40,000 units and sold 40,000 units. During its second year of operations, it produced 55,000 units and sold 30,000 units. In its third year, Haas produced 20,000 units and sold 45,000 units. The selling price of the company's product is $52 per unit.
Required:
Compute the company's break-even point in unit sales.
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.
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