Ritchie Manufacturing Company makes a product that it sells for $180 per unit. The company...
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Accounting
Ritchie Manufacturing Company makes a product that it sells for $180 per unit. The company incurs variable manufacturing costs of $79 per unit. Variable selling expenses are $20 per unit, annual fixed manufacturing costs are $500,000, and fixed selling and administrative costs are $245,200 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. Complete this question by entering your answers in the tabs below Req A to B | Req C Prepare a contribution margin income statement for the break-even sales volume. E MANUFACTURING C n Margin Income Statement S 1,656,000 riable costs ribution margin ixed costs 745,200 Req A to B
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