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please answer number 4 only please Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years
please answer number 4 only please
Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: During its first year of operations, Haas produced 60,000 units and sold 60,000 units. During its secand 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 $58 per unit. Required: 1. Compute the compny's break-even point in units sold. 2. Assume the company uses variable costing: a. Compute the unit product cost for Year I, 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 the unit product cost for Year I, Year 2 , and Year 3. b. Prepare an income statement for Year 1, Year 2, and Year 3. 4. Compare the net operating income figures that you computed in requirements 2 and 3 to the break-even point that you computed in requirement 1 . Which net openting income figures seem counterintuitive? Why? Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: During its first year of operations, Haas produced 60,000 units and sold 60,000 units. During its secand 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 $58 per unit. Required: 1. Compute the compny's break-even point in units sold. 2. Assume the company uses variable costing: a. Compute the unit product cost for Year I, 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 the unit product cost for Year I, Year 2 , and Year 3. b. Prepare an income statement for Year 1, Year 2, and Year 3. 4. Compare the net operating income figures that you computed in requirements 2 and 3 to the break-even point that you computed in requirement 1 . Which net openting income figures seem counterintuitive? WhyStep by Step Solution
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