Reference no: EM132824177

RRKB manufactures snowboards. RRKB began 2020 with an inventory of 320 boards. During the? year, it produced 1,000 boards and sold 950 for $760 each. Fixed production costs were $190,000?, and variable production costs were $400 per unit. Fixed? advertising, marketing, and other general and administrative expenses were $111,000?, and variable shipping costs were $11 per board. Assume that the cost of each unit in beginning inventory is equal to 2020 inventory cost. RRKB uses a denominator level of 1,000 units

• income statement assuming RRKB uses variable costing.
• income statement assuming RRKB uses absorption costing.? Production-volume variances are written off to cost of goods sold.

Problem 1: Compute the breakeven point in units sold assuming RRKB uses the following methods. Provide proof of your breakeven calculations.

a. Variable costing

b. Absorption costing