CBA is a division of Flynn, Inc. The division manufactures and sells a pump that is used in a wide variety of applications. During the coming year, it expects to sell 30,000 units for $25 per unit. Raad Ali, division manager, is considering producing either 30,000 or 40,000 units during the period. Other information is presented in the schedule below:

Division Information 2016

Beginning inventory0

Expected sales in units30,000

Selling price per unit$25

Variable manufacturing cost per unit$7

Fixed manufacturing overhead costs (total)$480,000

Fixed manufacturing overhead costs per unit

Based on 30,000 units ($480,000 30,000)$16

Based on 40,000 units ($480,000 40,000)$12

Manufacturing cost per unit

Based on 30,000 units ($7 variable + $16 fixed)$23

Based on 40,000 units ($7 variable + $12 fixed)$19

Selling and administrative expenses (all fixed)$25,000

Prepare a variable costing income statement with one column showing the results if 30,000 units are produced and one column showing the results if 40,000 units are produced.