Problem $7-18($Algo$)$ Variable and Absorption Costing Unit Product Costs and Income Statements $[$LO$7-1,[07-2]$

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 $$29$

Direct labor $,$$$21$

Variable manufacturing overhead $$9$

Variable selling and administrative $$3$

Fixed costs per year:

Fixed manufacturing overhead $$420,000$

Fixed selling and administrative expenses $$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 $75,000$ 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 $$72$ per unit.

Required:

Compute the company's break$-$even point in unit sales.

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 $3.$