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Ritchie Manufacturing Company makes a product that it sells for $150 per unit. The company...

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Accounting

Ritchie Manufacturing Company makes a product that it sells for $150 per unit. The company incurs variable manufacturing costs of
$60 per unit. Variable selling expenses are $18 per unit, annual fixed manufacturing costs are $480,000, and fixed selling and
administrative costs are $240,000 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. Use the contribution margin ratio approach.
d. Prepare a contribution margin income statement for the break-even sales volume.
Complete this question by entering your answers in the tabs below.
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