Problem 7-18 (Static) Variable and Absorption Costing Unit Product Costs and Income Statements [LO7 1, L07-2) 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 $ 20 Direct labor $ 12 Variable manufacturing overhead 5.4 Variable selling and administrative $ 2 Fixed costs per year! Fixed manufacturing overhead $ 960,000 Fixed selling and administrative expenses $ 240,00 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 $58 per unit Required: 1. Compute the company's break-even point in unt 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 uses absorption costing: a Compute the unit product cost for your 1 year 2, and year 3. b. Prepare an income statement for year 1 year 2, and year 3: Complete this question by entering your answers in the tabs below. T1 RA Tea 25 RA Rer38 Reg 1 Req 2A Reg 28 Req Reg 3B Compute the company's break-even point in unit sales. Break-even unit salos units tes Reg 1 Reg 2A Req 2B Reg 3A Reg 3B Compute the unit product cost for year 1, year 2, and year 3. Assume the company uses variable costing. Year 1 Your 2 Year 3 Unit product cost Reg 1 Reg 2A Reg 28 Req Req 3B 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 es Net operating income (loss) Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 28 Reg 3A Reg 38 Compute the unit product cost for year 1, year 2, and year 3. Assume the company uses absorption costing, (Round your Intermediate calculations and final answers to 2 decimal places.) Year 1 Year 2 Yoar 3 Unit product cost Reg 1 Reg 2A Req 2B Req 3A Req 3B Prepare an income statement for year 1, year 2, and year 3. Assume the company uses absorption costing. Intermediate calculations to 2 decimal places.) Haas Company Absorption Costing Income Statement Year 1 Year 2 Yoar 3 Net operating income (loss)