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Haas 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 $20 $12 $4 $2 Direct Labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $960,000 $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 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. Question 1 Not complete Marked out of 1.00 P Flag question 1. Compute the company's break even point in unit sales. Answer: Check Information P Flag question 2A. Assume the company uses variable costing, compute unit product cost for year 1, year 2 and year 3. Question 2 Not complete Marked out of 1.00 P Flag question Unit product cost Year 1: Answer: Check Question 3 Not complete Marked out of 1.00 P Flag question Unit product cost year 2: Answer: Check Question 4 Not complete Marked out of 1.00 P Flag question Unit product cost year 3: Answer: Check Question 5 Not yet answered Marked out of 1.00 P Flag question 2B. Prepare and income statement for year 1, year 2 and year 3. Question 6 Not complete Marked out of 1.00 P Flag question Total variable expenses, Year 1 Answer: Check Question 7 Not complete Marked out of 1.00 | Flag question Total variable expenses year 2 Answer: Check Question 12 Not complete Marked out of 3.00 P Flag question Total fixed cost per year Answer: Check Question 13 Not complete Marked out of 1.00 P Flag question Net Operating income year 1 Answer: Check Question 8 Not complete Marked out of 1.00 P Flag question Total variable expenses year 3 Answer: Check Question 9 Not complete Marked out of 1.00 P Flag question Contribution margin, year 1 Answer: Check Question 10 Not complete Marked out of 1.00 P Flag question Contribution margin year 2 Answer: Check Question 11 Not complete Marked out of 1.00 P Flag question Contribution margin year 3 Answer: Check Question 12 Not complete Marked out of 3.00 P Flag question Total fixed cost per year Answer: Check Question 13 Not complete Marked out of 1.00 P Flag question Net Operating income year 1 Answer: Check Question 14 Not complete Marked out of 1.00 P Flag question Net Operating income year 2 Answer: Check Question 15 Not complete Marked out of 1.00 P Flag question Net Operating income year 3 Answer: Check 3A. Assume the company uses absorption costing. compute the unit product cost for Year 1, year 2 and year 3. Question 16 Not complete Marked out of 1.00 P Flag question Unit product cost year 1 Answer: Check Question 17 Not complete Marked out of 1.00 P Flag question Unit product cost year 2 Answer: Question 18 Not complete Marked out of 1.00 P Flag question Unit product cost year 3 Answer: Check Question 19 Not yet answered Marked out of 1.00 P Flag question 3B. Prepare an income statement for year 1, year 2 and year 3. Not complete Marked out of 1.00 P Flag question Cost of Goods Sold year 1 Answer: Check Question 21 Not complete Marked out of 1.00 P Flag question Cost of Goods Sold year 2 Answer: Check Question 22 Not complete Marked out of 1.00 P Flag question Cost of Goods Sold year 3 Answer: question 23 Not complete Marked out of 1.00 P Flag question Net Operating income year 1 Answer: Check Question 24 Not complete Marked out of 1.00 Flag question Net Operating Income year 2 Answer: Check Question 25 Not complete Marked out of 1.00 P Flag question Net Operating income year 3 Answer: Question 26 Not complete Marked out of 1.00 P Flag question 4. Compare the net operating incomes that you computed in requirement 2 and 3 to the break even point in unit sales that you computed in requirement 1. Which net income figures (variable costing or absorption costing) seem counterintuitive? Year 2 and 3 Year 1 and 2 Year 1 and 3 Check