Breakeven under absorption costing:

Consider the following data with respect to the one product manufactured by XYZ Co.:

Sales price= $40 per unit

Variable production costs= $12 per unit

Variable costs non-production = $4 per unit

Fixed production costs= $480,000

Fixed costs non-production = $240,000

60,000 units planned production (normal quantity)

Required (assume absorption costing)

1. Calculate the breakeven volume in units if production= 0, i.e. Sales= ?

2. Calculate the breakeven volume in units if sales=0, i.e., Production=?