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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 $,$$$27$

Direct labor $,$$$19$

Variable manufacturing overhead $$3$

Variable selling and administrative $$2$

Fixed costs per year:

Fixed manufacturing overhead $$460,000$

Fixed selling and administrative expenses $$240,000$

During its first year of operations, Haas produced $100,000$ units and sold $100,000$ units. During its second year of operations, it

produced $115,000$ units and sold $90,000$ units. In its third year, Haas produced $80,000$ units and sold $105,000$ units. The selling price

of the company's product is $$58$ per unit.

Required:

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

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 $3.$

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.

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

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