Whispering Winds Motors is a division of Whispering Winds 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. Elizabeth Brown is the division manager. She is considering producing either 180,000 or 280,000 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		$ 2.70
Fixed manufacturing cost (total)		$ 504,000
Fixed manufacturing overhead costs per unit
Based on 180,000 units		$ 2.80	per unit ($ 504,000 180,000)
Based on 280,000 units		$ 1.80	per unit ($ 504,000 280,000)
Manufacturing cost per unit
Based on 180,000 units		$ 5.50	per unit ($ 2.70 variable + $ 2.80 fixed)
Based on 280,000 units		$ 4.50	per unit ($ 2.70 variable + $ 1.80 fixed)
Variable selling and administrative expenses		$ 0.45	per unit
Fixed selling and administrative expenses (total)		$ 10,300

(a)

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 280,000 units are produced.

WHISPERING WINDSMOTORS DIVISION Income Statement For the Year Ended 2022 Absorption Costing
Units produced		280,000		180,000
Units sold		enter a number of units		enter a number of units
select an income statement item Net income Selling and administrative expenses Contribution margin Gross profitSalesVariable costs Fixed costsCost of goods sold		$ enter a dollar amount		$ enter a dollar amount
select between addition and deduction AddLess: select an income statement item Selling and administrative expensesFixed costs cost of goods sold gross profitSalesNet income variable costs contribution margin		enter a dollar amount		enter a dollar amount
select a summarizing line for the first part Contribution margin variable costsCost of goods sold Net income fixed costsSelling and administrative expensesSalesGross profit		enter a total amount for the first part		enter a total amount for the first part
select between addition and deduction AddLess: select an income statement item SalesSelling and administrative expenses Cost of goods sold Gross profit Net income fixed costs variable costs Contribution margin		enter a dollar amount		enter a dollar amount
select a closing name for this statement Selling and administrative expensesSalesContribution margin Cost of goods soldFixed costsNet income Variable costsGross profit		$ enter a total amount for this statement		$ enter a total amount for this statement