Problem 6-18 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements [LO6-1, L06-2) $ 21 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 Direct labor Variable manufacturing overhead $9 Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead $ 420,000 Fixed selling and administrative expenses $ 180,000 During its first year of operations, Hoas produced 60,000 units and sold 60,000 units. During its second year of operations, it produced 75,000 units and sold 50,000 units. In its third year, Haos 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 soles. 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 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 Req Req3B Reg 2B Req1 Reg 2A Prepare an income statement for Year 1, Year 2, and Year 3. Assume the company uses variable costing. Haas Company Variable Costing Income Statement Year 1 Year 2 Year 3 Sales $ 1.740,000 $ 1,450,000 $ 1,885,000 Variable expenses: Variable cost of goods sold Variable selling and administrative 0 0 0 1,740,000 1.450,000 1,885,000 Total variable expenses Contribution margin Fixed expenses Fixed manufacturing overhead Fixed selling and administrative 0 0 0 Total fixed expenses Net operating income (loss) $ 1.740.000 $ 1.450.000 $ 1.885.000 Complete this question by entering your answers in the tabs below. Req 3B Req 1 Reg 2A Req 3A Req 2B Compute the unit product cost for Year 1, Year 2, and Year 3. Assume the company uses absorption cos intermediate calculations and final answers to 2 decimal places.) Year 1 Year 2 Year 3 Unit product cost Req 1 Req 2A Req 2B Req 3B Req Prepare an income statement for Year 1, Year 2, and Year 3. Assume the company uses absorption costir Intermediate calculations to 2 decimal places.) Haas Company Absorption Costing Income Statement Year 1 Year 2 Year 3 0 0 0 $ 0 0 0 $ Net operating income (loss) ( Req 3A Reg 38