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Hoas 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:
Hoas 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 $24 $16 $4 $1 Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year. s220.000 Fixed manufacturing overhead 140,000 $ Fixed selling and administrative expenses its first year of operations, Hees 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 seling price of the company's product is $54 per unit. Required: 1. Compute the company's break-even point in units sold. unts Break-even unit sales 2. Assume the company uses variable costing a. Compute the unit product cost for year 1, year 2. and year 3. Year 1 Year 2 Year 3 Unit product cost b. Prepare an income statement for year year 2, and year 3 Haas Company Variable Costing income Statement Year1 Year 2 Year 3 Variable xpenses Total variable epenses Fied epenses Tota fed egenses Net operating income osa) 3. Assume the compeny uses absorption costing a Compute the unt product cost for year 1, year 2 and year 3. (Round your Intermediate and final answers 10 2 decimal places) Year Year 2 Year3 Unt produet eest b. Prepare an income statement for year t year 2 and year 3. Round your intermediate calculations to 2 decamal placesi Haas Company Absorption Costing income Statement
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