Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: Variable cost per unit: Manufacturing: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses 21 13 4 2 $ $330,000 $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. a. Compute unit product costs for Year 1, Year 2, and Year 3. Answer is complete and correct. Year 1 Year 2 Year 3 $ 38 $ 38 38 Unit product cost $ b. Prepare an income statement for year 1, year 2, and year 3. Year 3 Answer is not complete. Haas Company Variable Costing Income Statement Year 1 Year 2 Sales Variable expenses: Variable cost of goods sold Variable selling and administrative Total variable expenses Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expenses Total fixed expenses: 0 Net operating income (loss) 0 0 0 0 0 0 0 0 0 $ $ 0 $ 0 3. Assume the company uses absorption costing: a. Compute unit product costs for Year 1, Year 2, and Year 3. (Round your intermediate and final answers to 2 decimal places.) Answer is complete and correct. Year 1 Year 2 Year 3 Unit product cost 46.25 44.00 54.50 b. Prepare an income statement for year 1, year 2, and year 3. (Round your intermediate calculations to 2 decimal places.) Answer is not complete. Year 2 Year 3 1,560,000 $ 2,340,000 Haas Company Absorption Costing Income Statement Year 1 Sales $ 2,080,000 $ Cost of goods sold 1,850,000 Gross margin 230,000 Selling and administrative expenses 230,000 Net operating income (loss) 0 $ oooo 1,560,000 210,000 1,350,000 2,340,000 240,000 $ 2,100,000