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Problem 6-18 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements {LOB-1, LOG-2] Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: Variable oust-.3 per unit: Manufacturing: Direct materials $ 29 Direct labor 5 21 Variable manufacturing overhead 5 9 variable selling and administrative 5 3 Fixed costs per year; Fixed manufacturing overhead $ 420,000 Fixed selling and administrative expenses 5 180,000 During its first year of operations. Haas produced 60.000 units and sold 60.000 units. During its second year of operations. It produced ?5,000 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 $72 per unit. Required: 1. Compute the company's break-even point in unit sales. 2. 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. 3. Assume the company:r 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 entarlng your anmn In the tab. below. Prepare an Income statement for fear ear company s variable costing. Haas Company Variable Costing Income Statement Year 1 Year 2 Year 3 Sales $ 4,320,000 $ 3,600,000 $ 4,680,000 Variable expenses: Variable cost of goods sold 3,540,000 2,950,000 3,835,000 Variable selling and administrative 180,000 150,000 195,000 Total variable expenses 3,720,000 3,100,000 4,030,000 Contribution margin 600,000 500,000 650,000 Fixed expenses: Fixed manufacturing overhead 420,000 420,000 420,000 Fixed selling and administrative 180,000 180,000 180,000 Total fixed expenses 600,000 600,000 600,000 Net operating income (loss) $ 0 $ (100,000) $ 50,000