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Score: 4.45 of 6 pts 2 of 4 (4 complete) HW Score: 68.92%, 16.54 of 24 pts P9-40 (similar to) is Question Help RRKB Company manufactures a specialized hoverboard. RRKB began 2017 with an inventory of 310 hoverboards. During the year, it produced 1,000 boards and sold 1,100 for $740 each. Fixed production costs were $263,500, and variable production costs were $220 per unit. Fixed advertising, marketing, and other general and administrative expenses were $120,000, 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 Q (the breakeven point) under absorption costing is 374 units. Requirement 4. Provide proof of your preceding breakeven calculations. (Use parentheses or a minus sign for an operating loss.) a. Variable costing 0 Requirements Revenues $ 560,180 176,381 Variable costs Contribution margin 383,799 383,500 Fixed costs 299 Operating income (less) b. Absorption costing. (Label any variances as favorable (F) or unfavorable (U).) Revenues S 276,760 Cost of goods sold: Cost of goods at standard cost 1. Prepare an income stalernent assuming RRKB uses variable costing 2. Prepare an income statement assuming RRKB uses absorption costing. RRKB uses a denominator level of 850 units. Production-volume variances are written off to cost of goods sold. 3. Compute the breakeven point in units sold assuming RRKB uses the following: a. Variable costing b. Absorption costing (Production - 1.000 boards) 4. Provide proof of your preceding breakevon calculations. 5. Assume that $55,000 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 RRKB 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? Adjustment for production-volume variance F Cost of goods sold Gross margin Fixed selling and administrative costs 120.000 Print Done Variable shipping costs 4,862 Choose from any list or enter any number in the input fields and then click Check