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Division Information for 2022 Based on 250,000 units Manufacturing cost per unit Based on 220,000 units Based on 250,000 units Variable selling and administrative expenses
Division Information for 2022 Based on 250,000 units Manufacturing cost per unit Based on 220,000 units Based on 250,000 units Variable selling and administrative expenses Fixed selling and administrative expenses (total) $2.20 per unit ($550,000250,000) $4.60 per unit ($2.10 variable +$2.50 fixed) $4.30 per unit ($2.10 variable +$2.20 fixed) $0.45 per unit $11,300 Kingbird Motors is a division of Kingbird 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. Helen Martin is the division manager. She is considering producing either 220,000 or 250,000 units during the period. Other information is as follows: KINGBIRDMOTORS DIVISION Income Statement For the Year Ended 2022 Absorption Costing Units produced 250,000 220,000 Units sold Prepare an absorption-costing income statement, with one column showing the results if 220,000 units are produced and one column showing the results if 250,000 units are produced
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