Problem 7-18 Variable and Absorption Costing Unit Product Costs and Income Statements (L07-1, 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 coste per unit Manufacturing Direct materiale Diet Thor Variable sanotturing werhead Variable walls and distrative Posts per year Naturovechead Tixed ralline and interative expenses . 12 4 2 960,000 $ 240,000 During its first year of operations, Hans 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: 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. 3. Assume the company uses absorption costing Prepare an income statement for year 1, year 2, and year 3. Assume the company uses ve Year 3 Haas Company Variable Costing Income Statement Year 1 Year 2 Sales $ 3,480,000 $ 2,900,000 Variable expenses: Variable cost of goods sold 2,160,000 1,800,000 Variable selling and administrative 120,000 100,000 0 2,280,000 1,200,000 1,900,000 1,000,000 0 Total variable expenses Contribution margin Fixed expenses Fixed manufacturing overhead Fixed selling and administrative 960,000 960,000 240,000 960,000 240,000 240,000 Total fixed expenses 1,200,000 1,200,000 1,200,000 $ (1,200,000) Net operating income (loss) $ 0 $ 200,000) the company's product is $58 per unit. Required: 1. 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. 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. Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Req 2B Req Req 3B Compute the unit product cost for year 1, year 2, and year 3. Assume the comp intermediate calculations and final answers to 2 decimal places.) Year 1 Year 2 Year 3 Unit product cost $ 52.00 $ 48.80 2. Assume the company uses variable costing: a. Compute the unit product cost for year 1, year 2, and year 3 6. 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. Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 28 Req Reg 3B Prepare an income statement for year 1, year 2, and year 3. Assume the company uses absorption costing. (Round your intermediate calculations to 2 decimal places.) Haas Company Absorption Costing Income Statement Year 1 Year 2 Year 3 Sales $ 3,480,000 $ 2,900,000 Cost of goods sold 3,120,000 2,440,000 36,200,000 360.000 460,000 (36,200,000) Selling and administrative expenses 360,000 340,000 Net operating income (105) 0 $ 120,000 $(36,200,000) Gross margin