Sheffield Motors is a division of Sheffield 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 $8.00 per unit. Lisa Anderson is the division manager. She is considering producing either 200,000 or 280,000 units during the period. Other information is as follows:

Division Information for 2022
Beginning inventory		0
Expected sales in units		200,000
Selling price per unit		$8.00
Variable manufacturing cost per unit		$2.80
Fixed manufacturing cost (total)		$560,000
Fixed manufacturing overhead costs per unit
Based on 200,000 units		$2.80	per unit ($560,000 200,000)
Based on 280,000 units		$2.00	per unit ($560,000 280,000)
Manufacturing cost per unit
Based on 200,000 units		$5.60	per unit ($2.80 variable + $2.80 fixed)
Based on 280,000 units		$4.80	per unit ($2.80 variable + $2.00 fixed)
Variable selling and administrative expenses		$0.50	per unit
Fixed selling and administrative expenses (total)		$11,100

(b)

Prepare a variable-costing income statement, with one column showing the results if 200,000 units are produced and one column showing the results if 280,000 units are produced.

SHEFFIELDMOTORS DIVISION Income Statement For the Year Ended 2022 Variable Costing
		280,000		200,000
		enter number of units sold		enter number of units sold
		$enter a dollar amount		$enter a dollar amount
		enter a dollar amount		enter a dollar amount
		enter a dollar amount		enter a dollar amount
		enter a total amount for the first part		enter a total amount for the first part
		enter a dollar amount		enter a dollar amount
		enter a dollar amount		enter a dollar amount
		$enter a total amount for this statement		$enter a total amount for this statement