Bonita Motors is a division of Bonita 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 $ 8.00 per unit. Linda Williams is the division manager. She is considering producing either 220,000 or 260,000 units during the period. Other information is as follows:

Division Information for 2022

Beginning inventory

0

Expected sales in units

220,000

Selling price per unit

$ 8.00

Variable manufacturing cost per unit

$ 2.80

Fixed manufacturing cost (total)

$ 572,000

Fixed manufacturing overhead costs per unit

Based on 220,000 units

$ 2.60

per unit ($ 572,000 220,000)

Based on 260,000 units

$ 2.20

per unit ($ 572,000 260,000)

Manufacturing cost per unit

Based on 220,000 units

$ 5.40

per unit ($ 2.80 variable + $ 2.60 fixed)

Based on 260,000 units

$ 5.00

per unit ($ 2.80 variable + $ 2.20 fixed)

Variable selling and administrative expenses

$ 0.40

per unit

Fixed selling and administrative expenses (total)

$ 10,500 Prepare a variable-costing income statement, with one column showing the results if 220,000 units are produced and one column showing the results if 260,000 units are produced.

BONITAMOTORS DIVISION Income Statement For the Year Ended 2022 Variable Costing
Units produced		260,000		220,000
Units sold		enter number of units sold		enter number of units sold
select an income statement item Variable selling and administrative expensesVariable costsFixed manufacturing overheadVariable costs of goods available for saleSalesFixed costsFixed selling and administrative expensesNet incomeTotal variable costsContribution marginVariable cost of goods sold		$ enter a dollar amount		$ enter a dollar amount
select between addition and deduction AddLess: select an opening name for section one Fixed costsTotal variable costsVariable selling and administrative expensesVariable costsSalesNet incomeVariable cost of goods soldVariable costs of goods available for saleContribution marginFixed manufacturing overheadFixed selling and administrative expenses
select an income statement item Total variable costsFixed costsVariable costsVariable costs of goods available for saleContribution marginVariable selling and administrative expensesNet incomeFixed manufacturing overheadFixed selling and administrative expensesSalesVariable cost of goods sold		enter a dollar amount		enter a dollar amount
select an income statement item Fixed selling and administrative expensesSalesFixed costsVariable selling and administrative expensesNet incomeTotal variable costsVariable costsVariable cost of goods soldVariable costs of goods available for saleFixed manufacturing overheadContribution margin		enter a dollar amount		enter a dollar amount
select a summarizing line for the first part Variable costsNet incomeVariable cost of goods soldFixed manufacturing overheadSalesFixed costsVariable selling and administrative expensesVariable costs of goods available for saleTotal variable costsContribution marginFixed selling and administrative expenses		enter a total amount for the first part		enter a total amount for the first part
select between addition and deduction AddLess: select an opening name for section two SalesVariable selling and administrative expensesTotal variable costsVariable cost of goods soldVariable costs of goods available for saleFixed costsNet incomeFixed selling and administrative expensesVariable costsFixed manufacturing overheadContribution margin
select an income statement item Fixed manufacturing overheadNet incomeTotal variable costsVariable cost of goods soldVariable costsSalesVariable costs of goods available for saleContribution marginFixed costsVariable selling and administrative expensesFixed selling and administrative expenses		enter a dollar amount		enter a dollar amount
select an income statement item SalesContribution marginVariable selling and administrative expensesFixed manufacturing overheadFixed costsTotal variable costsVariable costsVariable cost of goods soldFixed selling and administrative expensesVariable costs of goods available for saleNet income		enter a dollar amount		enter a dollar amount
select a closing name for this statement Total variable costsVariable costs of goods available for saleSalesFixed costsContribution marginFixed selling and administrative expensesVariable selling and administrative expensesFixed manufacturing overheadVariable cost of goods soldVariable costsNet income		$ enter a total amount for this statement		$ enter a total amount for this statement