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 SalesFixed costsContribution marginGross profitSelling and administrative expensesVariable costsCost of goods soldNet income		$enter a dollar amount		$enter a dollar amount
select between addition and deduction AddLess: select an income statement item Net incomeContribution marginVariable costsCost of goods soldSelling and administrative expensesGross profitSalesFixed costs		enter a dollar amount		enter a dollar amount
select a summarizing line for the first part SalesGross profitFixed costsVariable costsSelling and administrative expensesCost of goods soldContribution marginNet income		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 Cost of goods soldGross profitFixed costsNet incomeSelling and administrative expensesContribution marginSalesVariable costs		enter a dollar amount		enter a dollar amount
select a closing name for this statement SalesCost of goods soldFixed costsSelling and administrative expensesVariable costsNet incomeGross profitContribution margin		$enter a total amount for this statement		$enter a total amount for this statement

(b)

The parts of this question must be completed in order. This part will be available when you complete the part above.