Reference no: EM133006401

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:

Problem 1. Compute the company's break-even point in unit sales.

Problem 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.

Problem 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.

direct materials 29 direct labor 21 variable manufacturing overhead 9 sell and administrative 3 fixed manufacturing overhead 420,000 fixed selling and administraive expense 180,000