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:

$\{\begin{array}{ccc}\text{:}& \text{F}\text{i}\text{x}\text{e}\text{d}\text{m}\text{a}\text{n}\text{u}\text{f}\text{a}\text{c}\text{t}\text{u}\text{r}\text{i}\text{n}\text{g}\text{o}\text{v}\text{e}\text{r}\text{h}\text{e}\text{a}\text{d}& \end{array}$$$540,000$

Fixed selling and administrative expenses $$240,000$

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 $$73$ per unit.

Required:

Compute the company's break$-$even point in units sold.

Answer is complete and correct.

Break$-$even unit sales

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.

b$.$ Prepare an income statement for year $1,$ year $2,$ and year $3.($Round your intermediate calculations to $2$ decimal places.$)$

Answer is complete but not entirely correct.