Sunland Motors is a division of Sunland 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. Maria Miller 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		$7.00
Variable manufacturing cost per unit		$2.60
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		$5.40	per unit ($2.60 variable + $2.80 fixed)
Based on 280,000 units		$4.60	per unit ($2.60 variable + $2.00 fixed)
Variable selling and administrative expenses		$0.30	per unit
Fixed selling and administrative expenses (total)		$11,900

(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.

SUNLANDMOTORS DIVISION Income Statement For the Year Ended 2022 Variable Costing
Units produced		280,000		200,000
Units sold		enter number of units sold		enter number of units sold
select an income statement item SalesFixed selling and administrative expensesVariable selling and administrative expensesNet incomeVariable costsFixed costsTotal variable costsVariable cost of goods soldFixed manufacturing overheadContribution marginVariable costs of goods available for sale		$enter a dollar amount		$enter a dollar amount
select between addition and deduction AddLess: select an opening name for section one SalesVariable selling and administrative expensesFixed selling and administrative expensesVariable costsFixed manufacturing overheadContribution marginNet incomeFixed costsVariable cost of goods soldTotal variable costsVariable costs of goods available for sale
select an income statement item SalesFixed costsVariable costs of goods available for saleFixed manufacturing overheadVariable selling and administrative expensesContribution marginVariable cost of goods soldFixed selling and administrative expensesNet incomeVariable costsTotal variable costs		enter a dollar amount		enter a dollar amount
select an income statement item Fixed selling and administrative expensesNet incomeTotal variable costsFixed costsVariable selling and administrative expensesContribution marginVariable costs of goods available for saleVariable costsFixed manufacturing overheadVariable cost of goods soldSales		enter a dollar amount		enter a dollar amount
select a summarizing line for the first part Variable costsFixed costsVariable costs of goods available for saleTotal variable costsSalesVariable selling and administrative expensesNet incomeFixed manufacturing overheadContribution marginVariable cost of goods soldFixed selling and administrative expenses		enter a total amount for the first part		enter a total amount for the first part
select between addition and deduction AddLess: select an opening name for section two SalesNet incomeVariable costsContribution marginFixed manufacturing overheadTotal variable costsFixed costsVariable costs of goods available for saleFixed selling and administrative expensesVariable selling and administrative expensesVariable cost of goods sold
select an income statement item Net incomeVariable costs of goods available for saleSalesVariable costsTotal variable costsFixed selling and administrative expensesFixed manufacturing overheadVariable selling and administrative expensesFixed costsContribution marginVariable cost of goods sold		enter a dollar amount		enter a dollar amount
select an income statement item Variable selling and administrative expensesFixed costsVariable costs of goods available for saleVariable cost of goods soldTotal variable costsContribution marginSalesNet incomeFixed manufacturing overheadFixed selling and administrative expensesVariable costs		enter a dollar amount		enter a dollar amount
select a closing name for this statement Variable selling and administrative expensesVariable cost of goods soldFixed selling and administrative expensesVariable costs of goods available for saleVariable costsFixed costsSalesTotal variable costsFixed manufacturing overheadContribution marginNet income		$enter a total amount for this statement		$enter a total amount for this statement