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Splish Motors is a division of Splish 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 200,000 units for $8.00 per unit. Carol Garcia is the division manager. She is considering producing either 200,000 or 290,000 units during the period. Other information is as follows: Beginning inventory Expected sales in units Selling price per unit Variable manufacturing cost per unit Fixed manufacturing cost (total) Fixed manufacturing overhead costs per unit Based on 200,000 units Based on 290,000 units Manufacturing cost per unit Based on 200,000 units Division Information for 2022 Based on 290,000 units 0 200,000 $8.00 $2.50 $580,000 A $2.90 per unit ($580,000 200,000) $2.00 per unit ($580,000 290,000) $5.40 per unit ($2.50 variable + $2.90 fixed) $4.50 per unit ($2.50 variable + $2.00 fixed) SUPPO

Splish Motors is a division of Splish 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 200,000 units for $8.00 per unit. Carol Garcia is the division manager. She is considering producing either 200,000 or 290,000 units during the period. Other information is as follows: Prepare an absorption-costing income statement, with one column showing the results if 200,000 units are produced and one column showing the results if 290,000 units are produced. Division Information for 2022 \begin{tabular}{lr} Beginning inventory & 0 \\ Expected sales in units & 200,000 \\ Selling price per unit & $8.00 \\ Variable manufacturing cost per unit & $2.50 \\ Fixed manufacturing cost (total) & $580,000 \end{tabular} Fixed manufacturing overhead costs per unit Based on 200,000 units Based on 290,000 units $2.90 per unit ($580,000200,000) $2.00 per unit ($580,000290,000) Manufacturing cost per unit Based on 200,000 units $5.40 perunit (\$2.50variable +$2.90 fixed) Based on 290,000 units $4.50 per unit ($2.50 variable +$2.00 fixed) Variable selling and administrative expenses $0.35 perunit Fixed selling and administrative expenses (total) $10,900

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