Reference no: EM132632437
Question - Find the 1) Break-even unit sales, 2) Product cost (using variable costing) for years 1,2, and 3, 3) Product cost (using absorption costing) for years 1,2,3.
Info:
Variable costs per unit:
Manufacturing: Direct materials $27
Direct labor $14
Variable manufacturing overhead $6
Variable selling and administrative $1
Fixed costs per year:
Fixed manufacturing overhead $510,000
Fixed selling and administrative expenses $210,000
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 $60 per unit.
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