Q$3-$ Variable and absorption costing and breakeven points. Camino, a leading firm in the sports industry, produces basketballs for the consumer market. For the year ended December $31,2017,$ Camino sold $360,000$ basketballs at an average selling price of $\backslash (\backslash$$ $12\backslash )$ per unit. The following information also relates to $2017($assume constant unit costs and no variances of any kind$)$:

Required:

$1.$ Calculate the breakeven point $($in basketballs sold$)$ under:

a$.$ Variable costing

b$.$ Absorption costing

$2.$ Suppose direct materials costs were $\backslash (\backslash$$ $4\backslash )$ per basketball instead. Assuming all other data are the same, calculate the minimum number of basketballs Camino must have sold to attain a target operating income of $\backslash (\backslash$$ $120,000\backslash )$ under:

a$.$ Variable costing

b$.$ Absorption costing