accounting

Sheridan Motors is a division of Sheridan Products Corporation. The division manufactures and sells an electric switch used in a wide variety of applications. During the coming year, it expects to sell 180,000 units for $7.00 per unit. Mary Smith is the division manager. She is considering producing either 180,000 or 240,000 units during the period. Other information is as follows: Division Information for 2022 Beginning inventory 0 Expected sales in units 180,000 Selling price per unit $7.00 Variable manufacturing cost per unit $2.00 Fixed manufacturing cost (total) $432,000 Fixed manufacturing overhead costs per unit Based on 180,000 units $2.40 per unit ($432,000 + 180,000) Based on 240,000 units $1.80 per unit ($432,000 = 240,000) Manufacturing cost per unit Based on 180,000 units $4.40 per unit ($2.00 variable + $2.40 fixed) Based on 240,000 units $3.80 per unit ($2.00 variable + $1.80 fixed) Variable selling and administrative expenses $0.30 per unit Fixed selling and administrative expenses (total) $10,000 Prepare a variable-costing income statement, with one column showing the results if 180,000 units are produced and one column showing the results if 240,000 units are produced. SHERIDANMOTORS DIVISION Income Statement For the Year Ended 2022 Variable Costing Units produced 240,000 180,000 Units sold $ $ 11