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Vaughn Motors is a division of Vaughn Products Corporation. The division manufactures and sells an electric switch used in a wide variety of applications. During

Vaughn Motors is a division of Vaughn 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 180,000 units for $7.00 per unit. Margaret Moore is the division manager. She is considering producing either 180,000 or 300,000 units during the period. Other information is as follows:

image text in transcribedimage text in transcribedimage text in transcribed**I am unsure what I am doing wrong in the "300,000" section of the variable costing income statement! Please help!!

Your answer is correct. Prepare an absorption-costing income statement, with one column showing the results if 180,000 units are produced and one column showing the results if 300,000 units are produced. VAUGHNMOTORS DIVISION Income Statement For the Year Ended 2022 Absorption Costing 300,000 Units produced 180,000 Units sold 180000 180000 Sales $ 1260000 $ 1260000 Less Cost of goods sold 702000 918000 i Gross profit 558000 342000 Less Selling and administrative expenses 100500 100500 i Net income $ 457500 $ 241500

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