Q (the breakeven point) under absorption costing is 236,800 units Requirement 2. Suppose direct materials costs were $13 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 $90,000 under: (a) Variable costing and (b) Absorption costing. (Round your answers up to the nearest whole unit.) a. Variable costing. O Data Table - X Requirements The minimum number of basketballs Pura must have sold to attain its target operation income under variable costing is 280,829 basketballs. D. Absorption costing Inventory, January 1, 2017: 33,200 basketballs 1. Calculate the breakeven point (in basketballs sold) in 2017 under: a. Variable costing b. Absorption costing Inventory, December 31, 2017: 26,600 basketballs The minimum number of basketballs Pura must have sold to attain its target operating income under absorption costing is Fixed manufacturing costs: $1,000,000 393060 basketballs Fixed administrative costs: $2,841,600 2. Suppose direct materials costs were $13 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 $90,000 under. a. Variable costing b. Absorption costing Direct materials costs: $11 per basketball nter any number in the edit fields and then click Check Answer. Direct labor costs: $12 per basketball Jl parts showing
Q (the breakeven point) under absorption costing is 236,800 units Requirement 2. Suppose direct materials costs were $13 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 $90,000 under: (a) Variable costing and (b) Absorption costing. (Round your answers up to the nearest whole unit.) a. Variable costing. O Data Table - X Requirements The minimum number of basketballs Pura must have sold to attain its target operation income under variable costing is 280,829 basketballs. D. Absorption costing Inventory, January 1, 2017: 33,200 basketballs 1. Calculate the breakeven point (in basketballs sold) in 2017 under: a. Variable costing b. Absorption costing Inventory, December 31, 2017: 26,600 basketballs The minimum number of basketballs Pura must have sold to attain its target operating income under absorption costing is Fixed manufacturing costs: $1,000,000 393060 basketballs Fixed administrative costs: $2,841,600 2. Suppose direct materials costs were $13 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 $90,000 under. a. Variable costing b. Absorption costing Direct materials costs: $11 per basketball nter any number in the edit fields and then click Check Answer. Direct labor costs: $12 per basketball Jl parts showing
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
please, just answer requirement 2, part b as shown in the picture.
![Pura, a leading firm in the sports industry, produces basketballs for the consumer market. For the year ended December 31, 2017, Pura sold 256,600 basketballs at an average selling price of $39 per unit. The following information also relates to 2017 (assume constant unit costs and no
variances of any kind):
E (Click the icon to view the 2017 data.)
Read the requirements.
TOLCI TIA cu COSJ
unuer valnlabie cosurig
2$
3,841,600
16
240,100
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 "Q" is the breakeven point in units. Abbreviations used: BEP = breakeven point, CM = contribution margin, and Mfg = manufacturing.)
BEP under
absorption
Total fixed costs
+ [
Fixed mfg rate
x( Breakeven units
Units produced )]/
CM per unit
costing
$
3,841,600
+[ $
4
x (
Q
250,000
16
Q
Q (the breakeven point) under absorption costing is
236,800 units.
Requirement 2. Suppose direct materials costs were $13 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 $90,000 under: (a) Variable costing and (b) Absorption
costing. (Round your answers up to the nearest whole unit.)
a. Variable costing.
Data Table
Requirements
The minimum number of basketballs Pura must have sold to attain its target operation income under variable costing is
280,829 basketballs.
Inventory, January 1, 2017:
33,200 basketballs
b. Absorption costing
1. Calculate the breakeven point (in basketballs sold) in 2017 under:
Inventory, December 31, 2017: 26,600 basketballs
a. Variable costing
The minimum number of basketballs Pura must have sold to attain its target operating income under absorption costing is
b. Absorption costing
Fixed manufacturing costs:
$1,000,000
393060 basketballs.
$2,841,600
2. Suppose direct materials costs were $13 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 $90,000 under:
Fixed administrative costs:
Direct materials costs:
$11 per basketball
Enter any number in the edit fields and then click Check Answer.
a. Variable costing
Direct labor costs:
$12 per basketball
All parts showing
b. Absorption costing](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F05daa4d9-8c98-40c5-9fac-94c3aa32ce8f%2Fb6cc71ab-ecc4-484e-a81c-f4f017003b9e%2Fwmsj8t8_processed.png&w=3840&q=75)
Transcribed Image Text:Pura, a leading firm in the sports industry, produces basketballs for the consumer market. For the year ended December 31, 2017, Pura sold 256,600 basketballs at an average selling price of $39 per unit. The following information also relates to 2017 (assume constant unit costs and no
variances of any kind):
E (Click the icon to view the 2017 data.)
Read the requirements.
TOLCI TIA cu COSJ
unuer valnlabie cosurig
2$
3,841,600
16
240,100
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 "Q" is the breakeven point in units. Abbreviations used: BEP = breakeven point, CM = contribution margin, and Mfg = manufacturing.)
BEP under
absorption
Total fixed costs
+ [
Fixed mfg rate
x( Breakeven units
Units produced )]/
CM per unit
costing
$
3,841,600
+[ $
4
x (
Q
250,000
16
Q
Q (the breakeven point) under absorption costing is
236,800 units.
Requirement 2. Suppose direct materials costs were $13 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 $90,000 under: (a) Variable costing and (b) Absorption
costing. (Round your answers up to the nearest whole unit.)
a. Variable costing.
Data Table
Requirements
The minimum number of basketballs Pura must have sold to attain its target operation income under variable costing is
280,829 basketballs.
Inventory, January 1, 2017:
33,200 basketballs
b. Absorption costing
1. Calculate the breakeven point (in basketballs sold) in 2017 under:
Inventory, December 31, 2017: 26,600 basketballs
a. Variable costing
The minimum number of basketballs Pura must have sold to attain its target operating income under absorption costing is
b. Absorption costing
Fixed manufacturing costs:
$1,000,000
393060 basketballs.
$2,841,600
2. Suppose direct materials costs were $13 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 $90,000 under:
Fixed administrative costs:
Direct materials costs:
$11 per basketball
Enter any number in the edit fields and then click Check Answer.
a. Variable costing
Direct labor costs:
$12 per basketball
All parts showing
b. Absorption costing
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