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Oriole Motors is a division of Oriole Products Corporation. The division manufactures and sells an electric switch used in a wide variety of applications. During
Oriole Motors is a division of Oriole 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 200,000 units for $7.00 per unit. Betty Harris is the division manager. She is considering producing either 200,000 or 270,000 units during the period. Other information is as follows: Beginning inventory Expected sales in units Selling price per unit Variable manufacturing cost per unit Fixed manufacturing cost (total) Fixed manufacturing overhead costs per unit Based on 200,000 units Based on 270,000 units (a) Manufacturing cost per unit Based on 200,000 units Based on 270,000 units Variable selling and administrative expenses Fixed selling and administrative expenses (total) Division Information for 2022 Units produced Units sold : 0 200,000 $7.00 $2.30 $540,000 Prepare an absorption-costing income statement, with one column showing the results if 200,000 units are produced and one column showing the results if 270,000 units are produced. $2.70 per unit ($540,000 200,000) $2.00 per unit ($540,000 270,000) $5.00 per unit ($2.30 variable + $2.70 fixed) $4.30 per unit ($2.30 variable + $2.00 fixed) $0.30 per unit $10,800 ORIOLEMOTORS DIVISION Income Statement For the Year Ended 2022 Absorption Costing 270,000 $ $ $ $ 200,00
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