Hello. Please help me with the following problem 8 -17.

product cost. Required. Assume that the division is using variable costing. How many units should be scheduled for pre 1. duction during the last quarter of the year? Show computations and explain your answer. Will number of units scheduled for production affect the division's reported profit for the year? Explain assume that the division is using absorption costing and that the divisional manager is given an 2. annual bonus based on the division's operating income. If Hartley wants to maximize her division's operating income for the year, how many units should be scheduled for production during the last quarter? Explain. 3. Identify the ethical issues involved in the decision Hartley must make about the level of production for the last quarter of the year. PROBLEM 8-17 Variable and Absorption Costing Unit Product Costs and Income Statements [LO1, LO2, LO3, LO4] 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 ...... $ 20 Direct labour . . . . . . 12 Variable manufacturing overhead 4 Variable selling and administrative . N Fixed costs per year: Fixed manufacturing overhead. . $960,000 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 pro- duced 40,000 units and sold 65,000 units. The selling price of the company's product is $58 per unit. Required: 1. Compute the company's break-even in point in units sold. 2. Assume the company uses variable costing: a. Compute unit product costs 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 unit product costs for Year 1, Year 2, and Year 3. b. Prepare an income statement for Year 1, Year 2, and Year 3. 4. Compare net income operating income figures that you computed in requirements 1 and 2 to the break even point calculated in requirement 1. Which net operating income figures seem counterintuitive? W