Please do not give solution in image format thanku Units producedUnits soldWILDHORSEMOTORS DIVISIONIncome StatementFor the Year Ended 2022Variable Costing240,000210,000 Wildhorse Motors is a division of Wildhorse Products Corporation. The division manufactures and sells an electric switch used in awide variety of applications. During the coming year, it expects to sell 210,000 units for $8.00 per unit. Nancy Jackson is the divisionmanager. She is considering producing either 210,000 or 240,000 units during the period. Other information is as follows:Division Information for 2022Beginning inventoryExpected sales in unitsSelling price per unitVariable manufacturing cost per unitFixed manufacturing cost (total)Fixed manufacturing overhead costs per unitBased on 210,000 unitsBased on 240,000 unitsManufacturing cost per unitBased on 210,000 unitsBased on 240,000 unitsVariable selling and administrative expensesFixed selling and administrative expenses (total)0210,000$8.00$2.30$504,000$2.40 per unit ($504,000+210,000)$2.10 per unit ($504,000+240,000)$4.70 per unit ($2.30 variable+ $2.40 fixed)$4.40 per unit ($2.30 variable $2.10 fixed)$0.35 per unitmes$12,000

Income statement :— It is one of the financial statement that shows profitability, total revenue and…

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Units produced Units sold WILDHORSEMOTORS DIVISION Income Statement For the Year Ended 2022 Variable Costing 240,000 || 210,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter10: Decentralization: Responsibility Accounting, Performance Evaluation, And Transfer Pricing

Section: Chapter Questions

Problem 12E

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Wildhorse Motors is a division of Wildhorse 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 $8.00 per unit. Nancy Jackson 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 2022 0 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 210,000 units Based on 240,000 units Manufacturing cost per unit Based on 210,000 units Based on 240,000 units Variable selling and administrative expenses Fixed selling and administrative expenses (total) 210,000 $8.00 $2.30 $504,000 $2.40 per unit ($504,000 ÷ 210,000) $2.10 per unit ($504,000 ÷ 240,000) $4.70 per unit ($2.30 variable + $2.40 fixed) $4.40 per unit ($2.30 variable +…
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