Question 36 of 36 18.3/26 III View Policies Show Attempt History Current Attempt in Progress Coronado Motors is a division of Coronado 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 $8.00 per unit. Jennifer Davis is the division manager. She is considering producing either 210,000 or 240,000 units during the period. Other information is as follows: Division Information for 2022 Beginning inventory 0 Expected sales in units 210,000 Selling price per unit $8.00 Variable manufacturing cost per unit $2.30 Fixed manufacturing cost (total) $504,000 Fixed manufacturing overhead costs per unit Based on 210,000 units $2.40 per unit ($504,000 = 210,000) Based on 240,000 units $2.10 per unit ($504,000 = 240,000) Manufacturing cost per unit Based on 210,000 units $4.70 per unit ($2.30 variable + $2.40 fixed) Based on 240,000 units $4.40 per unit ($2.30 variable + $2.10 fixed) Variable selling and administrative expenses $0.30 per unit Fixed selling and administrative expenses (total) $11,100 (a) Your answer is correct. 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 240,000 units are produced. CORONADOMOTORS DIVISION Income Statement For the Year Ended 2022 Absorption Costing Units produced 240,000 210,000 Units sold 210,000 210,0 Sales $ 1680000 $ 16800 Less Cost of goods sold 924000 i 987000 Gross profit 756000 6930 Less Selling and administrative expenses 74100 i 74100 Net income 681900 6185 Attempts: 1 of 2 used (b) Your answer is partially correct. Prepare a variable-costing income statement, with one column showing the results if 210,000 units are produced and one column showing the results if 240,000 units are produced. CORONADOMOTORS DIVISION Income Statement For the Year Ended 2022 Variable Costing Units produced 240,000 210,00 Units sold 210,000 Sales $ 1,680,000 $ Less Variable cost of goods sold 987,000 693000 Add V Variable selling and administrative expenses 63,000 Fixed selling and administrative expenses 11,100 Net income 618,900 Save for Later Attempts: 1 of 2 used Submit