I need help calculating requirement 6. I know how to use the breakeven point formula, but I never can figure out what the amount should be for fixed manufacturing rate or how to go about getting that amount.

GGRB Company manufactures a specialized hoverboard. GGRB began 2017 with an inventory of 300 hoverboards. During the year, it produced 1,100 boards and sold 1,150 for $750 each. Fixed production costs were $209,000, and variable production costs were $320 per unit. Fixed advertising, marketing, and other general and administrative expenses were $113,000, and variable shipping costs were $13 per board. Assume that the cost of each unit in beginning inventory is equal to 2017 inventory cost. Read the requirements. - Requirements 1. Prepare an income statement assuming GGRB uses variable costing. 2. Prepare an income statement assuming GGRB uses absorption costing. GGRB uses a denominator level of 950 units. Production-volume variances are written off to cost of goods sold. 3. Compute the breakeven point in units sold assuming GGRB uses the following: a. Variable costing b. Absorption costing (Production = 1,100 boards) 4. Provide proof of your preceding breakeven calculations. 5. Assume that $60,000 of fixed administrative costs were reclassified as fixed production costs. Would this reclassification affect breakeven point using variable costing? What if absorption costing were used? Explain. 6. The company that supplies GGRB with its specialized impact-resistant material has announced a price increase of $22 for each board. What effect would this have on the breakeven points previously calculated? Requirement 1. Prepare an income statement assuming GGRB uses variable costing. Complete the top half of the income statement first, then complete the bottom portion. Revenues 862,500 Variable cost of goods sold: Beginning inventory 96,000 352,000 Variable manufacturing costs Cost of goods available for sale 448,000 (80,000) Deduct ending inventory Variable cost of goods sold 368,000 14,950 Variable shipping costs Contribution margin Fixed manufacturing costs 479,550 209,000 113,000 Fixed selling and administrative costs $ Operating income (loss) 157,550 Requirement 2. Prepare an income statement assuming GGRB uses absorption costing. GGRB uses a denominator level of 950 units. Production-volume variances are written off to cost of goods sold. Complete the top half of the income statement first, then complete the bottom portion. (Label any variances as favorable (F) or unfavorable (U). Use parentheses or a minus sign for an operating loss.) Revenues $ 862,500 Cost of goods sold: Beginning inventory Variable manufacturing costs $ Question 352,000 242,000 756,000 Allocated fixed manufacturing costs Cost of goods available for sale Deduct ending inventory Adjustment for production-volume variance Cost of goods sold Gross margin Fixed selling and administrative costs (135,000) (33,000) F. 588,000 274,500 113,000 Variable shipping costs 14,950 $ Operating income (loss) 146,550 Requirement 3. Compute the breakeven point in units sold assuming GGRB uses the following: (a) Variable costing, and (b) Absorption costing (Production = 1,100 boards). a. Calculate the breakeven point in units under variable costing. (Round your answer up to the next whole number.) Breakeven point under variable costing Total fixed costs / Contribution margin per unit = $ 322,000 / $ 417 = 773 b. Calculate the breakeven point in units under absorption costing. Question First, select the formula and enter the amounts. Then solve for Q in the next step. (Assume "Q" is the breakeven point in units. Abbreviations used: BEP = breakeven point, CM = contribution margin, and Mfg = manufacturing.) BEP under absorption costing Total fixed costs + [ Fixed mfg rate Units produced )]/ CM per unit = x( Breakeven units x( $ 322,000 220 + [ $ 1,100 417 )]/ $ (Round your answer up to the next whole number.) Q (the breakeven point) under absorption costing is 407 units. Requirement 4. Provide proof of your preceding breakeven calculations. (Use parentheses or a minus sign for an operating loss.) a. Variable costing. Question Revenues 579,750 Variable costs 257,409 Contribution margin 322,341 322,000 Fixed costs 341 Operating income (loss) b. Absorption costing. (Label any variances as favorable (F) or unfavorable (U).) Revenues $ 305,250 Cost of goods sold: Cost of goods at standard cost $ 219,780 (33,000) F. Adjustment for production-volume variance Cost of goods sold 186,780 Gross margin 118,470 Variable shipping costs 5,291 Fixed selling and administrative costs 113,000 $ 179 Operating income (loss) Requirement 5. Assume that $60,000 of fixed administrative costs were reclassified as fixed production costs. Would this reclassification affect breakeven point using variable costing? What if absorption costing were used? Explain. If $60,000 of fixed administrative costs were reclassified as fixed production costs, there would be no change in breakeven sales using variable costing. This is because all fixed costs are treated the same way in a variable costing system. Under absorption costing, the change in classification would impact the fixed manufacturing overhead rate that is applied to units of production. If sales and production are unequal, the additional fixed overhead would either increase or decrease breakeven sales. Requirement 6. The company that supplies GGRB with its specialized impact-resistant material has announced a price increase of $22 for each board. What effect would this have on the breakeven points previously calculated? (Round your answers up to the next whole number.) The breakeven point under variable costing would be units