Income Statement For the Year Ended 2020 Variable Costing Units produced 240,000 210,000 Units sold $ $ v v v v v v v v v FULL SCREEN PRINTER VERSION BACK NEXT Question 36 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 inventory 0 Expected sales in units 210,000 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 $2.40 per unit ($504,000 + 210,000) Based on 240,000 units $2.10 per 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 $0.30 per unit Fixed selling and administrative expenses (total) $11,100