Haas Company manufactures and sells one product. The following information pertains to each of the companys first three years of operations:
Variable costs per unit:
Manufacturing:
Direct materials $
Direct labor $
Variable manufacturing overhead $
Variable selling and administrative $
Fixed costs per year:
Fixed manufacturing overhead $
Fixed selling and administrative expenses $
During its first year of operations, Haas produced units and sold units. During its second year of operations, it produced units and sold units. In its third year, Haas produced units and sold units. The selling price of the companys product is $ per unit.
Required:
Compute the companys breakeven point in unit sales.
Assume the company uses variable costing:
a Compute the unit product cost for Year Year and Year
b Prepare an income statement for Year Year and Year
Assume the company uses absorption costing:
a Compute the unit product cost for Year Year and Year
b Prepare an income statement for Year Year and Year
