Determine the break-even point in units

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Problem - Ritchle Manufacturing Company makes a product that it sells for $170 per unit. The company Incurs variable manufacturing costs of $86 per unit. Variable selling expenses are $16 per unit, annual fixed manufacturing costs are $458,000, and fixed selling and administrative costs are $242,400 per year.

Required - Determine the break-even point in units and dollars using each of the following approaches:

a. Use the equation method.

b. Use the contribution margin per unit approach.

c. Prepare a contribution margin Income statement for the break-even sales volume.

Reference no: EM133048595

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