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Blondell, a leading firm in the sports industry, produces basketballs for the consumer market. For the year ended December 31, 2017, Blondell sold 285,600 basketballs
Blondell, a leading firm in the sports industry, produces basketballs for the consumer market. For the year ended December 31, 2017, Blondell sold 285,600 basketballs at an average selling price of 537 per unit. The following information also relates to 2017 (assume constant unit costs and no variances of any kind): (Click the icon to view the 2017 data) Read the requirements. Requirement 1. Calculate the breakeven point (In basketballs sold) in 2017 under (a) Vanable costing and (b) Absorption costing a. Calculate the breakeven point in units under variable costing. Breakeven point - under variable costing i Requirements - X Data Table 1. Calculate the breakeven point in basketballs sold) in 2017 under: a. Variable costing b. Absorption costing 2. Suppose direct materials costs were 512 per basketball Instead. Assuming all other data are the same calculate the minimum number of basketballs Blondell must have sold in 2017 to attain a target operating income of sao 000 under a. Variable costing b. Absorption costing Inventory, January 1, 2017: 32 B00 basketballs Inventory, December 31, 2017: 27.200 basketballs Fixed manufacturing costs: $3.120,000 Fixed administrative costs: $3,362,400 Direct materials costs: sa per basketball Direct labor costs: $5 per basketball Print | Done Print Done
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