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 270,000 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 $2.70 Fixed manufacturing cost (total) $594,000 Fixed manufacturing overhead costs per unit Based on 220,000 units $2.70 per unit ($594,000 : 220,000) Based on 270,000 units $2.20 per unit ($594,000 : 270,000) Manufacturing cost per unit Based on 220,000 units $5.40 per unit ($2.70 variable + $2.70 fixed) Based on 270,000 units $4.90 per unit ($2.70 variable + $2.20 fixed) Variable selling and administrative expenses $0.50 per unit Fixed selling and administrative expenses (total) $11,900