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 220,000 units for $8 per unit. Ester Madden is the division manager. She is considering producing either 220,000 or 260,000 units during the period. Other information is as follows: Division Information for 2020 Beginning inventory 0 Expected sales in units 220,000 Selling price per unit $8 Variable manufacturing cost per unit $2.80 Fixed manufacturing cost (total) $572,000 Fixed manufacturing overhead costs per unit Based on 220,000 units $2.60 per unit ($572,000+ 220,000) Based on 260,000 units $2.20 per unit ($572,000 + 260,000) Manufacturing cost per unit Based on 220,000 units $5.40 per unit ($2.80 variable +$2.60 fixed) Based on 260,000 units $5.00 per unit ($2.80 variable $2.20 fixed) Yorial selline and administrador Soporama Selling price per unit $8 Variable manufacturing cost per unit $2.80 $572,000 $2.60 per unit ($572,000 + 220,000) $2.20 per unit ($572,000 + 260,000) Fixed manufacturing cost (total) Fixed manufacturing overhead costs per unit Based on 220,000 units Based on 260,000 units Manufacturing cost per unit Based on 220,000 units Based on 260,000 units Variable selling and administrative expenses Fixed selling and administrative expenses (total) $5.40 per unit ($2.80 variable + $2.60 fixed) $5.00 per unit ($2.80 variable + $2.20 fixed) $0.40 per unit $10,500 Prepare an absorption-costing income statement, with one column showing the results it 220,000 units are produced and one column showing the results if 260,000 units are produced. BASIC ELECTRIC MOTORS DIVISION Income Statement For the Year Ended 2020 Absorption Costing 260,000 220.000 Units produced 220,000 220,000 Units sold 1.760,000 1,700,000 Sales $ 1.100.000 1.188.000 i Less Cost of goods sold 572.000 660.000 Gross proht 98.500 i 98,500 Less Selling and administrative expenses 561.500 $ 473,500 Net Income Prepare a variable-costing income statement, with one column showing the results if 220,000 units are produced and one column showing the results if 260,000 units are produced. BASIC ELECTRIC MOTORS DIVISION Income Statement For the Year Ended 2020 Variable Costing 260,000 220.000 Units produced Units sold +