Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations:

$10$ points

${}_{\text{e}\text{B}\text{o}\text{o}\text{k}}$

Hint

Ask

References

Variabte costs per unit:

Manufacturing:

Direct materials

Direct labor

Variable manufacturing overhead

Variable selling and administrative

Fixed costs per year:

Fixed manufacturing overhead

Fixed selling and administrative expenses

$$450,000$

$$210,000$

During 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 company's product is $$58$ 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 $3.$

Complete this question by entering your answers in the tabs below.

Compute the company's break$-$even point in unit sales.

Break$-$even unit sales

units