Lucent Manufacturing Company makes a product that it sells for $65 per unit. The company incurs variable manufacturing costs of $21 per unit. Variable selling expenses are $19 per unit, annual fixed manufacturing costs are $182,000, and fixed selling and administrative costs are $159,250 per year.

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

a. Equation method.

Break-even point in units
Break-even point in dollars

b. Contribution margin per unit.

Contribution margin per unit
Break-even point in units
Break-even point in dollars

c. Contribution margin ratio. (Do not round intermediate calculations. Round "Contribution margin" to 2 decimal places (i.e., .2345 should be entered as 23.45) and rest of the answers to nearest whole number.)

Contribution margin ratio		%
Break-even point in dollars
Break-even point in units

d. Prepare a contribution margin income statement for the break-even sales volume.

LUCENT MANUFACTURING COMPANY
Contribution Margin Income Statement