Question
Haas Company manufactures and sells one product. The following information pertains to each of the companys first three years of operations:Variable costs per unit:Manufacturing:Direct materials$25Direct
Haas Company manufactures and sells one product. The following information pertains to each of the companys first three years of operations:Variable costs per unit:Manufacturing:Direct materials$25Direct labor$16 ?Variable manufacturing overhead$5Variable selling and administrative$2Fixed costs per year:Fixed manufacturing overhead$300000Fixed selling and administrative expenses180000During 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 companys product is $56 ?per unit.1.
Compute the companys break-even point in units sold.2.Assume the company uses variable costinga.Compute the unit product cost for year 1, ?year 2, ?and year 3..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. (Round your intermediate and final answers to 2 ?decimal places.)b.Prepare an income statement for year 1, ?year 2, ?and year 3.
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