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Trinity, a leading firm in the sports industry, produces basketballs for the consumer market. For the year ended December 31, 2017, Trinity sold 173,000 basketballs
Trinity, a leading firm in the sports industry, produces basketballs for the consumer market. For the year ended December 31, 2017, Trinity sold 173,000 basketballs at an average selling price of $37 per unit. The following information also relates to 2017 (assume constant unit costs and no variances of any kind): (Click the icon to view the 2017 data.) Read the requirements. i Data Table * Requirements Inventory, January 1, 2017: Inventory, December 31, 2017: Fixed manufacturing costs: 28,100 basketballs 25,100 basketballs $ 1,020,000 $ 4,726,400 9 per basketball 6 per basketball 1. Calculate the breakeven point (in basketballs sold) in 2017 under: a. Variable costing b. Absorption costing 2. Suppose direct materials costs were $11 per basketball instead. Assuming all other data are the same, calculate the minimum number of basketballs Trinity must have sold in 2017 to attain a target operating income of $90,000 under: a. Variable costing b. Absorption costing Fixed administrative costs: Direct materials costs: Direct labor costs: Print Done Print Done
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