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

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Windsor Motors is a division of Windsor 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. Patricia Johnson is the division manager. She is considering producing either 180,000 or 250,000 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 $ 2,60 Fixed manufacturing cost (total) $ 450,000 Fixed manufacturing overhead costs per unit Based on 180,000 units $ 2.50 per unit ($ 450,000 180,000) Based on 250,000 units $ 1.80 per unit ($ 450,000 - 250,000) Manufacturing cost per unit Based on 180,000 units $ 5.10 per unit ($ 2.60 variable + $ 2.50 hxed) Based on 250,000 units $4,40 per unit ($ 2,60 variable +$ 180 fxed) Variable selling and administrative expenses $0.40 per unit Fixed selling and administrative expenses (total) $11.800 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 250,000 units are produced. WINDSORMOTORS DIVISION Income Statement For the Year Ended 2022 Variable Costing 250,000 180,000 Units produced Units sold 11 Variable Costing 250,000 Units produced 180,000 Units sold $ Fixed selling and administrative expenses Fixed manufacturing overhead Net income Total variable costs Variable costs Sales Variable cost of goods sold Variable costs of goods available for sale Variable selling and administrative expenses Contribution margin Fixed costs For the Year Ended 2022 Variable Costing Units produced 250,000 180,000 Units sold Add Less For the Year Ended 2022 Variable Costing 250,000 180,000 Units produced Units sold Sales Contribution margin Fixed costs Variable selling and administrative expenses Variable cost of goods sold Fixed manufacturing overhead Variable costs Net Income Fixed selling and administrative expenses Total variable costs Variable costs of goods available for sale Units produced 250,000 180,000 Units sold Fixed selling and administrative expenses Variable costs Sales Fixed costs Total variable costs Fixed manufacturing overhead Net Income Variable selling and administrative expenses Variable costs of goods available for sale Contribution margin Variable cost of goods sold

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