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Waterway Motors is a division of Waterway Products Corporation. The division manufactures and sells an electric switch used in a wide variety of applications. During
Waterway Motors is a division of Waterway 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. Karen White is the division manager. She is considering producing either 200,000 or 240,000 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 $2.20 Fixed manufacturing cost (total) $480,000 Fixed manufacturing overhead costs per unit Based on 200,000 units $2.40 per unit ($480,000 + 200,000} Based on 240,000 units $2.00 per unit ($480,000 + 240,000} Manufacturing cost per u nit Based on 200,000 units $4.60 per unit ($2.20 variable + $2.40 xed) Based on 240,000 units $4.20 per unit ($2.20 variable + $2.00 xed} Variable selling and administrative expenses $0.30 per unit Fixed selling and administrative expenses (total) $11,200 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 240,000 units are produced. WATERWAYMOTORS DIVISION Income Statement For the Year Ended 2022 Variable Costing Units produced 240,000 200,000 Units sold Sales $ $ Less + : Variable cost of goods sold Variable selling and administrative expenses Contribution margin Less Fixed manufacturing overhead Fixed selling and administrative expenses Net income $ $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 240,000 units are produced. WATERWAYMOTORS DIVISION Income Statement For the Year Ended 2022 Variable Costing Units produced 240,000 200,000 Units sold Sales 0 ea en Sales Variable Variable costs of goods available for sale I Fixed selling and administrative expenses Fixed costs Variable cost of goods sold Contribl Variable selling and administrative expenses Total variable costs Less 3 v' Fixed manufacturing overhead Net income Fixed se Contribution margin Variable costs 4 Net income 4 1:9 to
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