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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:

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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 Variable selling and administrative $ 2 Fixed costs per year! Fixed manufacturing overhead $ 330,000 Fixed selling and administrative expennes $ 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, Haos produced 20,000 units and sold 45,000 units. The selling price of the company's product is $52 per unit. Required: 1. Compute the company's break-even point in unit soles. 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. Reg 1 Reg 2A Req 2B Req Req 3B Prepare an income statement for Year 1, Year 2, and Year 3. Assume the company uses variable costing. Haas Company Variable Costing Income Statement Year 1 Year 2 Year 3 Sales $ 2,080,000 $ 1,560,000 $ 2,340,000 Variable expenses: Variable cost of goods sold 1,520,000 2,090,000 760,000 Variable selling and administrative 80,000 110,000 40,000 Total variable expenses 1,600,000 480,000 2,200,000 (640,000) 800,000 1,540,000 Fixed expenses: 0 Net operating income (loss) 0 0 $ 480,000 $ (640,000) $ 1,540,000 Dr. - 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 Year 3 Sales 0 0 0 Net operating income (loss) $ 0 $ 0 $ 0

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