b. Practical capacity theoretical capacity adjusted for unavoidable interruptions, breakdowns, and so forth -3 times 4 times 320 = 3, 840 c. Normal capacity utilization-estimated at 3, 240 units d. Master-budget capacity utilization-the strengthening stock market and the growing popularity of motorcycles have prompted the marketing department to issue an estimate for 2012 of 3, 600 units Calculate the budgeted fixed manufacturing overhead cost rates under the four denominator-level Concepts Under are the benefits to Thunder Bolt, using either theoretical capacity or practical capacity? Under a cost-based pricing system, what are the negative aspects of a master-budget denominator What are the positive aspects? Variable and absorption costing and breakeven points. Mega-Air, Inc., manufactures a specialized snowboard made for the advanced snowboarder. Mega-Air began 2011 with an inventory of 240 snow-boards. During the year, it produce 900 boards and sold 995 for existT50 each. Fixed production costs were exist280,000 and variable production costs were exist335 per unit. Fixed advertising, marketing, and other general administrative expenses the cost of each unit in beginning in is equal to 2011 inventory cost. Prepare an income statement assuming Mega-Air uses variable costing. Prepare an income statement assuming Mega-Air uses absorption costing. Mega-Air uses a denominator level of 1000 units. Production volume variances are written off to cost of goods sold Required Compute the breakeven point in units sold assuming Mega-Air uses the following Variable costing b. Absorption costing (Production = 900 boards) Provide proof of your breakeven calculations. Assume that exist20,000 of fixed administrative were reclassified as fixed production costs used? Would this change affect breakeven point using variable costing? What if absorption costing were Explain. The company that supplies Mega-Air with its impact-resistant material has announced a price increase of exist25 for each board. What effect would this have on the breakeven points previously calculated