Marks Manufacturing Company makes a product that it sells for $170 per unit. The company incurs variable manufacturing costs of $86 per unit. Variable selling expenses are $16 per unit, annual fixed manufacturing costs are $458,000, and fixed selling and administrative costs are $242,400 per year.

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.

a. Break-even point in units

Break-even point in dollars

b. Contribution margin per unit

Break-even point in units

Break-even point in dollars

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

MARKS MANUFACTURING COMPANY Contribution Margin Income Statement Sales Variable costs Contribution margin Fixed costs Net income