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Tamarisk Motors is a division of Tamarisk Products Corporation. The division manufactures and sells an electric switch used in a wide variety of applications. During
Tamarisk Motors is a division of Tamarisk 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 190,000 units for $8.00 per unit. Dorothy Taylor is the division manager. She is considering producing either 190,000 or 250,000 units during the period. Other information is as follows: Division Information for 2022 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 190,000 units Based on 250,000 units Manufacturing cost per unit Based on 190,000 units Based on 250,000 units Variable selling and administrative expenses Fixed selling and administrative expenses (total) 0 190,000 $8.00 $2.90 $475,000 $2.50 per unit ($475,000+ 190,000) $1.90 per unit ($475,000 250,000) $5.40 per unit ($2.90 variable + $2.50 fixed) $4.80 per unit ($2.90 variable + $1.90 fixed) $0.50 per unit $11,300
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