Blue Spruce Motors is a division of Blue Spruce 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 $7.00 per unit. Sandra Robinson is the division manager. She is considering producing either 210,000 or 300,000 units during the period. Other information is as follows: Division Information for 2022 Beginning inventory Expected sales in units Selling price per unit Variable manufacturing cost per unit Fixed manufacturing cost (total) Fixed manufacturing overhead costs per unit Based on 210,000 units 0 210,000 $7.00 $2.50 $630,000 Based on 300,000 units $3.00 per unit ($630,000+210,000) $2.10 per unit ($630,000 + 300,000) Manufacturing cost per unit Based on 210,000 units Based on 300,000 units Variable selling and administrative expenses Fixed selling and administrative expenses (total) $5.50 per unit ($2.50 variable + $3.00 fixed) $4.60 per unit ($2.50 variable + $2.10 fixed) $0.50 per unit $11,500 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 300,000 units are produced. Units produced Units sold BLUE SPRUCEMOTORS DIVISION Income Statement For the Year Ended 2022 Absorption Costing 300,000 210000 210,000 210000 (b) Sales Less: Cost of goods sold Gross profit Less : Selling and administrative expenses Net income $ 1470000 $ 966000 504000 116500 387500 $ 1470000 1155000 i 315000 116500 i 198500 Attempts: 1 of 2 used 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 300,000 units are produced. BLUE SPRUCEMOTORS DIVISION Income Statement For the Year Ended 2022 Variable Costing Units produced Units sold 300,000 $ 210,000