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Problem 6 - 1 8 ( Algo ) Variable and Absorption Costing Unit Product Costs and Income Statements [ LO 6 - 1 , [

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Problem 6-18(Algo) Variable and Absorption Costing Unit Product Costs and Income Statements [LO6-1,[06-2]
Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations:
Varlable costs per unit:
,Manufacturing:
,,Direct matertals $27
,,Direct labor 19
,,Variable manufacturing overhead
,Varlable selling and adninistrative
Fixed costs per year:
,Fixed nanufacturing overhead $ $460,000
,Fixed selling and adninistrative expenses ,$240,600
During its first year of operations, Haas produced 100,000 units and sold 100,000 units. During its second year of operations, It produced 115,000 units and sold 90,000 units, In its third year, Haas produced 80,000 units and sold 105,000 units. The seling price of the company's product is $58 per unit.
Required:
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.
Assume the company 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.
Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
\table[[,Required 3A]]
Prepare an income statement for Year 1, Year 2, and Year 3. Assume the company uses absorption costing.
Note: Round your intermediate calculations to 2 decimal places.
\table[[Haas Company],[Absorption Costing Income Statement],[,,Year 1,Year 2,Year 3],[Sales,0,5,800,000o.,5,220,000,56,000,000O?
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