Basic Electric Motors is a division of Basic Electric 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 per unit. Ester Madden 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 2016
Beginning inventory		0
Expected sales in units		180,000
Selling price per unit		$7
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 fixed)
Based on 250,000 units		$4.40	per unit ($2.60 variable + $1.80 fixed)
Variable selling and administrative expenses		$0.40	per unit
Fixed selling and administrative expenses (total)		$11,800

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 250,000 units are produced.

BASIC ELECTRIC MOTORS DIVISION Income Statement For the Year Ended 2016 Absorption Costing Units produced 250,000 180,000 Units sold