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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 cost per unit: Manufacturing: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses Required: 1. Compute the company's break-even point in units sold. Break-even unit sales es is. units 22 9151 29 21 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 $64 per unit. 1 $330,000 $150,000

Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: Variable cost per unit: Manufacturing: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses Required: 1. Compute the company's break-even point in units sold. Break-even unit sales es is. units 22 9151 29 21 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 $64 per unit. 1 $330,000 $150,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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3. Assume the company uses absorption costing: a. Compute unit product costs for Year 1, Year 2, and Year 3. (Round your intermediate and final answers to 2 decimal places.) Year 1 Year 3 Unit product cost Year 2 b. Prepare an income statement for year 1, year 2, and year 3. (Round your intermediate calculations to 2 decimal places.) Net operating income (loss) Haas Company Absorption Costing Income Statement Year 1 Year 2 Year 3
Transcribed Image Text:3. Assume the company uses absorption costing: a. Compute unit product costs for Year 1, Year 2, and Year 3. (Round your intermediate and final answers to 2 decimal places.) Year 1 Year 3 Unit product cost Year 2 b. Prepare an income statement for year 1, year 2, and year 3. (Round your intermediate calculations to 2 decimal places.) Net operating income (loss) Haas Company Absorption Costing Income Statement Year 1 Year 2 Year 3
Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: Variable cost per unit: Manufacturing: Direct materials. Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses Required: 1. Compute the company's break-even point in units sold. Break-even unit sales $ $ $ $ units 29 21 5 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 $64 per unit. 1 $330,000 $150,000
Transcribed Image Text:Haas Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: Variable cost per unit: Manufacturing: Direct materials. Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses Required: 1. Compute the company's break-even point in units sold. Break-even unit sales $ $ $ $ units 29 21 5 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 $64 per unit. 1 $330,000 $150,000
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