Question 36 Basic Electric Motors is a division of Basic Electric 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 210,000 units for $7 per unit. Ester Madden is the division manager. She is considering producing either 210,000 or 300,000 units during the period. Other information is as follows: Division Information for 2020 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 210,000 $7 $2.50 $630,000 $3.00 per unit ($630,000 210,000) $2.10 per unit ($630,000300,000) Based on 210,000 units Based on 300,000 units Manufacturing cost per unit Based on 210,000 units Based on 300,000 units $5.50 per unit ($2.50 variable $3.00 fixed) $4.60 per unit ($2.50 variable $2.10 fixed) $0.50 per unit Variable selling and administrative expenses Fixed selling and administrative expenses (total) $11,500 Your answer is partially correct. Try again. Prepare an absorption-costing income statement, with one column showing the results if 210,000 units are produced and one column showing the results if 300,000 units are produced BASIC ELECTRIC MOTORS DIVISION Income Statement For the Year Ended 2020 Absorption Costing Units produced 300,000 210,000 Units sold 300000 210000 Sales 2100000 1470000 Less Cost of goods sold 1650000 966000 marginY 450000 504000 Less , ling and administrative expenses 161500 116500 Net income 288500 387500