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 210,000 units for $8 per unit. Ester Madden is the division manager. She is considering producing either 210,000 or 240,000 units during the period. Other information is as follows:

Division Information for 2020

Beginning inventory0

Expected sales in units210,000

Selling price per unit$8

Variable manufacturing cost per unit$2.30

Fixed manufacturing cost (total) $504,000

Fixed manufacturing overhead costs per unit

Based on 210,000 units-$2.40per unit ($504,000 210,000)

Based on 240,000 units-$2.10per unit ($504,000 240,000)

Manufacturing cost per unit

Based on 210,000 units $4.70 per unit ($2.30 variable + $2.40 fixed)

Based on 240,000 units $4.40 per unit ($2.30 variable + $2.10 fixed)

Variable selling and administrative expenses $0.30per unit

Fixed selling and administrative expenses (total) $11,100

Fill in the absorption-costing income statement, with one column showing the results if 210,000 units are produced and one column showing the results if 240,000 units are produced.

BASIC ELECTRIC MOTORS DIVISION Income Statement For the Year Ended 2020 Absorption Costing Units produced 240,000 210,000 Units sold V $ $ v v v v v