Variable Costing and Budgeting $($i$)$

Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations:

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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 $$56$ per unit.

Required:

Compute the company's break$-$even point in units sold.

Break$-$even unit sales

units

Assume the company uses variable costing:

a$.$ Compute unit product costs for Year $1,$ Year $2,$ and Year $3.$

$\backslash$table$[[,$Year $1,$Year $2,$Year $3],[$Unit product cost,,,$]]$

$2$b$)$ prepare an income statement for year $1,$ year $2,$ year $3$

$3$a$)$ assume the company uses absorption costing

Compute unit product costs for year $1,$ year $2,$ year $3$

b$)$ prepare an income statement for year $1,$ year $2,$ year $3$