Determine the break-even point in units and dollars

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Reference no: EM132820982

Ritchie Manufacturing Company makes a product that it sells for $140 per unit. The company incurs variable manufacturing costs of $64 per unit. Variable selling expenses are $13 per unit, annual fixed manufacturing costs are $452,000, and fixed selling and administrative costs are $209,500 per year.

Required

Problem 1: Determine the break-even point in units and dollars using each of the following approaches:

1. Use the equation method.
2. Use the contribution margin per unit approach.
3. Use the contribution margin ratio approach.
4. Create a contribution margin income statement for the break-even sales volume.

Reference no: EM132820982

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