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.

Determine the break-even point in units and dollars using the equation method, the contribution margin per unit approach and the contribution margin ratio 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.

RITCHIE MANUFACTURING COMPANY
Contribution Margin Income Statement