Exercise 153 Graham 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. Steve Moss, 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 inventory Expected sales in units Selling price per unit Variable manufacturing cost per unit Fixed manufacturing overhead costs (total) Fixed manufacturing overhead costs per unit 30,000 $25 $7 S480,000 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) Based on 40,000 units ($7 variable $12 fixed) $23 $19 525,000 Selling and administrative expenses (all fixed) 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. Graham Division Income Statement (Variable Costing) For the Year Ended 2016