Basic Electric Motors is a division of Basic Electric 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 220,000 units for $8 per unit. Ester Madden is the division manager. She is considering producing either 220,000 or 270,000 units during the period. Other information is as follows

Division Information for 2020 Beginning inventory 0 Expected sales in units 220,000 Selling price per unit $8 Variable manufacturing cost per unit $2.70 Fixed manufacturing cost (total) $594,000 Fixed manufacturing overhead costs per unit Based on 220,000 units $2.70 per unit ($594,000 : 220,000) Based on 270,000 units $2.20 per unit ($594,000 : 270,000) Manufacturing cost per unit Based on 220,000 units $5.40 per unit ($2.70 variable + $2.70 fixed) Based on 270,000 units $4.90 per unit ($2.70 variable + $2.20 fixed) Variable selling and administrative expenses $0.50 per unit Fixed selling and administrative expenses (total) $11,900