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 $58 per unit.
1. compute the company�s break-even point in units sold.
2. assume the company uses variable costing
a. compute the unit product cost for year 1, year 2, and year 3.
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. (round your intermediate and final answers to 2 decimal places.)
b. prepare an income statement for year 1, year 2, and year 3.

Suppose that two firms produce differentiated products and compete in prices. as in class, the two firms are located at two ends of a line one mile apart. consumers are evenly distributed along the line. the firms have identical marginal cost, $60. firm b produces a product with value $110 to consumers.firm a (located at 0 on the unit line) produces a higher quality product with value $120 to consumers. the cost of travel are directly related to the distance a consumer travels to purchase a good. if a consumerhas to travel a mile to purchase a good, the incur a cost of $20. if they have to travel x fraction of a mile, they incur a cost of $20x. (a) write down the expressions for how much a consumer at location d would value the products sold by firms a and b, if they set prices p_{a} and p_{b} ? (b) based on your expressions in (a), how much will be demanded from each firm if prices p_{a} and p_{b} are set? (c) what are the nash equilibrium prices?