MercyMercy,

a leading firm in the sports industry, produces basketballs for the consumer market. For the year ended December 31,

20172017,

MercyMercy

sold

243 comma 000243,000

basketballs at an average selling price of

$ 41$41

per unit. The following information also relates to

20172017

(assume constant unit costs and no variances of any kind):

Inventory, January 1, 2017:	28,100 basketballs
Inventory, December 31, 2017:	25,100 basketballs
Fixed manufacturing costs:	$1,200,000
Fixed administrative costs:	$3,234,000
Direct materials costs:	$12 per basketball
Direct labor costs:	$9 per basketball

Requirement 1. Calculate the breakeven point (in basketballs sold) in

20172017

under: (a) Variable costing and (b) Absorption costing.

a. Calculate the breakeven point in units under variable costing.

				Breakeven point
	/		=	under variable costing
	/		=