Nickelson Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations:…

Nickelson 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: Fixed costs per year: During its first year of operations Nickelson 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, Nickelson produced 40,000 units and sold 65,000 units. The selling price of the company’s product is $56 per unit.1.Compute the company’s break-even point in units sold. Break-even unit sales units 2.Assume the company uses variable costing:a.Compute the unit product cost for year 1, year 2, and year 3. (Omit the “$” sign in your response.)Year 3b.Prepare an income statement for year 1, year 2, and year 3. (Leave no cells blank – be certain to enter “0” wherever required. Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the “$” sign in your response.)Variable Costing Income StatementYear 3 Variable expenses: Total variable expenses Fixed expenses: Total fixed expenses 3.Assume the company uses absorption costing:a.Compute the unit product cost for year 1, year 2, and year 3. (Round your intermediate and final answers to 2 decimal places. Omit the “$” sign in your response.)Year 3b.Prepare an income statement for year 1, year 2, and year 3. (Leave no cells blank – be certain to enter “0” wherever required. Input all amounts as positive values except losses which should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places. Omit the “$” sign in your response.)Absorption Costing Income StatementYear 3