Pura, a leading firm in the sports industry, produces basketballs for the consumer market. For the year ended December 31, 2017, Pura sold 191,300 basketballs at an average selling price of $30 per unit. The following information also relates to 2017 (assume constant unit costs and no variances of any kind): EEB Click the icon to view the 2017 data.) Read the requirements Requirement 1. Calculate the breakeven point (in basketballs sold) in 2017 under: (a) Variable costing and (b) Absorption costing a. Calculate the breakeven point in units under variable costing. Breakeven point -under variable costing b. Calculate the breakeven point in units under absorption costing First, select the formula and enter the amounts. Then solve for Q in the next step. (Assume "O is the breakeven point in units.Abbreviations used: BEP-breakeven point, CM-contribution margin, and Mig manufacturing.) BEP under absorption -costing x Breakeven units x( 1/ Q (the breakeven point) under absorption costing is units. Requirement 2. Suppose direct materials costs were S13 per basketball instead. Assuming all other data are the same, calculate the minimum number of basketballs Pura must have sold in 2017 to attain a target operating income of $80,000 under: (a) Variable costing and (b) Absorption costing. (Round your answers up to the nearest whole unit.) a. Variable costing The minimum number of basketballs Pura must have sold to attain its target operation income under variable costing is basketballs b. Absorption costing The minimum number of basketballs Pura must have sold to attain its target operating income under absorption costing is basketballs Pura, a leading firm in the sports industry, produces basketballs for the consumer market. For the year ended December 31, 2017, Pura sold 191,300 basketballs at an average selling price of $30 per unit. The following information also relates to 2017 (assume constant unit costs and no variances of any kind): EEB Click the icon to view the 2017 data.) Read the requirements Requirement 1. Calculate the breakeven point (in basketballs sold) in 2017 under: (a) Variable costing and (b) Absorption costing a. Calculate the breakeven point in units under variable costing. Breakeven point -under variable costing b. Calculate the breakeven point in units under absorption costing First, select the formula and enter the amounts. Then solve for Q in the next step. (Assume "O is the breakeven point in units.Abbreviations used: BEP-breakeven point, CM-contribution margin, and Mig manufacturing.) BEP under absorption -costing x Breakeven units x( 1/ Q (the breakeven point) under absorption costing is units. Requirement 2. Suppose direct materials costs were S13 per basketball instead. Assuming all other data are the same, calculate the minimum number of basketballs Pura must have sold in 2017 to attain a target operating income of $80,000 under: (a) Variable costing and (b) Absorption costing. (Round your answers up to the nearest whole unit.) a. Variable costing The minimum number of basketballs Pura must have sold to attain its target operation income under variable costing is basketballs b. Absorption costing The minimum number of basketballs Pura must have sold to attain its target operating income under absorption costing is basketballs
