Ardella, a leading firm in the sports industry, produces basketballs for the consumer market. For the year ended December 31, 2020, Ardella sold 177,700 basketballs at an average selling price of $37 per unit. The following information also relates to 2020 (assume constant unit costs and no variances of any kind): (Click the icon to view the 2020 data.) Read the requirements. Data Table Inventory, January 1, 2020: Inventory, December 31, 2020: Fixed manufacturing costs: Fixed administrative costs: Direct materials costs: Direct labor costs: Print iRequirements 32,800 basketballs 25,100 basketballs $1,020,000 $4,726,400 $9 per basketball $6 per basketball Done + - Requirement 1. Calculate the breakeven point (in basketballs sold) in 2020 under: (a) Variabl a. Calculate the breakeven point in units under variable costing. Breakeven point = under variable costing 1. Calculate the breakeven point (in basketballs sold) in 2020 under: a. Variable costing b. Absorption costing Print Done X 2. Suppose direct materials costs were $11 per basketball instead. Assuming all other data are the same, calculate the minimum number of basketballs Ardella must have sold in 2020 to attain a target operating income of $110,000 under: a. Variable costing b. Absorption costing
Ardella, a leading firm in the sports industry, produces basketballs for the consumer market. For the year ended December 31, 2020, Ardella sold 177,700 basketballs at an average selling price of $37 per unit. The following information also relates to 2020 (assume constant unit costs and no variances of any kind): (Click the icon to view the 2020 data.) Read the requirements. Data Table Inventory, January 1, 2020: Inventory, December 31, 2020: Fixed manufacturing costs: Fixed administrative costs: Direct materials costs: Direct labor costs: Print iRequirements 32,800 basketballs 25,100 basketballs $1,020,000 $4,726,400 $9 per basketball $6 per basketball Done + - Requirement 1. Calculate the breakeven point (in basketballs sold) in 2020 under: (a) Variabl a. Calculate the breakeven point in units under variable costing. Breakeven point = under variable costing 1. Calculate the breakeven point (in basketballs sold) in 2020 under: a. Variable costing b. Absorption costing Print Done X 2. Suppose direct materials costs were $11 per basketball instead. Assuming all other data are the same, calculate the minimum number of basketballs Ardella must have sold in 2020 to attain a target operating income of $110,000 under: a. Variable costing b. Absorption costing
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Ardella, a leading firm in the sports industry, produces basketballs for the consumer market. For the year ended December 31, 2020, Ardella sold 177,700 basketballs at an average selling price of $37 per unit. The following information also
relates to 2020 (assume constant unit costs and no variances of any kind):
(Click the icon to view the 2020 data.)
Read the requirements.
i Data Table
Inventory, January 1, 2020:
Inventory, December 31, 2020:
Fixed manufacturing costs:
Fixed administrative costs:
Direct materials costs:
Direct labor costs:
Print
Requirements
32,800 basketballs
25,100 basketballs
$1,020,000
$4,726,400
$9 per basketball
$6 per basketball
Done
Requirement 1. Calculate the breakeven point (in basketballs sold) in 2020 under: (a) Variabl
a. Calculate the breakeven point in units under variable costing.
+
=
1. Calculate the breakeven point (in basketballs sold) in 2020 under:
a. Variable costing
b. Absorption costing
Print
Breakeven point
under variable costing
2. Suppose direct materials costs were $11 per basketball instead. Assuming all
other data are the same, calculate the minimum number of basketballs Ardella
must have sold in 2020 to attain a target operating income of $110,000 under:
a. Variable costing
b. Absorption costing
Done
x
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