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 25 Direct labor 12 Variable manufacturing overhead 4 Variable selling and administrative 2 Fixed costs per year : Fixed manufacturing overhead $ 480 , 000 Fixed selling and administrative expenses 360 ,000Compute the unit product cost for Year 1, Year 2, and Year 3. ASSUME the company USES Variable costing . Year ! Year 2 Year 3 Unit product costHaas Company Variable Costing Income Statement Year 1 Year 2 Year 3 Indirect materials Variable expenses: Indirect labor Fixed manufacturing overhead 0 0 0 0 0 0 $ 0 $ 0 Net operating income (loss) 0 $Haas Company Absorption Casting Income Statement Year 1 Year 2 Year 3 Sales 3, 422, 793 2, 650, 000 \\$ 3, 705,000 0 Cost of goods sold 2.040, 000 0 2.370, 000 0 3, 205, 000 0 Gross margin $82, 793 $80, 000 400,000 Selling and administrative EXPENSES $80,00010 $60,000` ATO DODEZ Net operating income ( 1055) 2,793 20,000 170,000)