Basic Electric Motors is a division of Basic Electric Products Corporation. The division manufactures and sells an electric motor used in a wide variety of applications. During the coming year it expects to sell 50,000 units for $30 per unit. Kerry Tharp is the division manager. She is considering producing either 50,000 or 80,000 units during the period. Other information is presented in the schedule. Division Information for 2011 Beginning inventory 0 Expected sales in units 50,000 Selling price per unit $30 Variable manufacturing costs per unit $12 Fixed manufacturing overhead costs (total) $400,000 Fixed manufacturing overhead costs per unit: Based on 50,000 units $8 per unit ($400,000 50,000) Based on 80,000 units $5 per unit ($400,000 80,000) Manufacturing cost per unit: Based on 50,000 units $20 per unit ($12 variable + $8 fixed) Based on 80,000 units $17 per unit ($12 variable + $5 fixed) Variable selling and administrative expenses $2 Fixed selling and administrative expenses (total) $40,000 Prepare an absorption costing income statement, with one column showing the results if 50,000 units are produced and one column showing the results if 80,000 units are produced. (List amounts from largest to smallest e.g. 10, 5, 3, 2. Enter all amounts as positive amounts and subtract where necessary.) BASIC ELECTRIC MOTOR DIVISION Income Statement For the year Ended December 31, 2011 Absorption Costing 50,000 80,000 Produced Produced $ $ Net income: Prepare a variable costing income statement, with one column showing the results if 50,000 units are produced and one column showing the results if 80,000 units are produced. (List amounts from largest to smallest e.g. 10, 5, 3, 2. Enter all amounts as positive amounts and subtract where necessary.) BASIC ELECTRIC MOTOR DIVISION Income Statement For the year Ended December 31, 2011 Variable Costing 50,000 80,000 Produced Produced $ $ Net income $: $