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 210,000 units for $8 per unit. Ester Madden is the division manager. She is considering producing either 210.000 or 240,000 units during the period. Other information is as follows: Division Information for 2020 Beginning inventory 0 Expected sales in units 210,000 Selling price per unit $8 Variable manufacturing cost per unit $2.30 Fixed manufacturing cost (total) $504,000 Fixed manufacturing overhead costs per unit Based on 210,000 units $2.40 per unit ($504,000 = 210,000) Based on 240,000 units $2.10 per unit ($504,000 = 240,000) Manufacturing cost per unit Based on 210,000 units $4.70 per unit ($2.30 variable + $2.40 fixed) Based on 240,000 units $4.40 per unit ($2.30 variable + $2.10 fixed) Variable selling and administrative expenses $0.35 per unit Fixed selling and administrative expenses (total) $12,000 (a) Your answer is correct. Prepare an absorption-costing income statement, with one column showing the results if 210,000 units are produced and one column showing the results if 240,000 units are produced. (a) Your answer is correct Prepare an absorption-costing income statement, with one column showing the results if 210,000 units are produced and one column showing the results if 240,000 units are produced. BASIC ELECTRIC MOTORS DIVISION Income Statement For the Year Ended 2020 Absorption Costing Units produced 240,000 210.000 Units sold 210000 210000 Sales 1680000 1680000 Less : Cost of goods sold 924000 i 987000 i Gross profit 756000 693000 Less Selling and administrative expenses 85500 85500 Net income $ 670500 607500 e Textbook and Media Attempts: 1 of 3 used (b) Prepare a variable-costing income statement, with one column showing the results if 210,000 units are produced and one column showing the results if 240,000 units are produced. (b) Prepare a variable-costing income statement, with one column showing the results if 210,000 units are produced and one column showing the results if 240,000 units are produced. BASIC ELECTRIC MOTORS DIVISION Income Statement For the Year Ended 2020 Variable Costing 240,000 Units produced 210.000 Units sold > $ > TI e Textbook and Media Save for Later Attempts: 0 of 3 used Submit