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Bramble Motors is a division of Bramble Products Corporation. The division manufactures and sells an electric switch used in a wide variety of applications. During
Bramble Motors is a division of Bramble 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 $ 8.00 per unit. Susan Wilson is the division manager. She is considering producing either 180,000 or 300,000 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 | $ 8.00 | |||
Variable manufacturing cost per unit | $ 2.00 | |||
Fixed manufacturing cost (total) | $ 540,000 | |||
Fixed manufacturing overhead costs per unit | ||||
Based on 180,000 units | $ 3.00 | per unit ($ 540,000 180,000) | ||
Based on 300,000 units | $ 1.80 | per unit ($ 540,000 300,000) | ||
Manufacturing cost per unit | ||||
Based on 180,000 units | $ 5.00 | per unit ($ 2.00 variable + $ 3.00 fixed) | ||
Based on 300,000 units | $ 3.80 | per unit ($ 2.00 variable + $ 1.80 fixed) | ||
Variable selling and administrative expenses | $ 0.50 | per unit | ||
Fixed selling and administrative expenses (total) | $ 10,200 |
Please help me figure out the rest of the values and also calculate the net income at the end for both units produced.
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 300,000 units are produced, BRAMBLEMOTORS DIVISION Income Statement For the Year Ended 2022 Variable Costing Units produced 300,000 180,000 Units sold 180000 180000 Sales $ 1440000 $ 1440000 Less Variable costs Variable costs of goods available for sale Variable selling and administrative expenses 90000 90000 TILI Contribution margin Less Fixed costs Fixed manufacturing overhead Fixed selling and administrative expensesStep by Step Solution
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