Determining the break-even point and preparing a contribution margin income statement Latoma Manufacturing Company makes a product that it sells for $45 per unit. The company incurs variable manufacturing costs of $21 per unit. Variable selling expenses are $6 per unit, annual fixed manufacturing costs are $100,000, and fixed selling and administrative costs are $80,000 per year.

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

a. Contribution margin per unit.

b. Equation method.

c. Contribution margin ratio.

d. Confirm your results by preparing a contribution margin income statement for the break-even sales volume.