9-31. VARIABLE AND ABSORPTION COSTING AND BREAKEVEN POINTS. 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 constint unit costs and no variances of any kind): Inventory, January 1, 2020: Inventory, December 31, 2020: Fixed manufacturing costs: Fixed administrative costs: Direct materials costs: Direct labor costs: 32,800 basketballs 25,100 basketballs $1,020,000 $4,726,400 $ 9 per basketball $ 6 per basketball Required 1. Calculate the breakeven point (in basketballs sold) in 2020 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 Ardella must have sold in 2020 to attain a target operating income of $110,000 under a. Variable costing b. Absorption costing