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: Division Information for 2022 Beginning inventory 0 Expected sales in units 180,000 Selling price per unit $7.00 Variable manufacturing cost per unit $2.10 Fixed manufacturing cost (total) $540,000 Fixed manufacturing overhead costs per unit Based on 180,000 units $3.00 per unit ($540,000 = 180,000) $1.80 per unit ($540,000 + 300,000) Based on 300,000 units Manufacturing cost per unit Based on 180,000 units Based on 300,000 units $5.10 per unit ($2.10 variable + $3.00 fixed) $3.90 per unit ($2.10 variable + $1.80 fixed) Variable selling and administrative expenses $0.50 per unit Fixed selling and administrative expenses (total) $10,500 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 Units produced 300,000 180,000 Units sold 180000 180000 Sales $ 1260000 1260000 A Less 2 : Cost of goods sold 702000 i 918000 i Gross profit 558000 342000 Less : Selling and administrative expenses 100500 100500 i Net income 457500 241500 $ $ $ Attempts: 1 of 2 used Prepare a variable-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 Variable Costing Units produced 300,000 180,000 Units sold $ + + + 4 ta $