Ritchie Manufacturing Company makes a product that it sells for $150 per unit. The company incurs variable manufacturing costs of $67 per unit. Variable selling expenses are $14 per unit, annual fixed manufacturing costs are $454,000, and fixed selling and administrative costs are $277,400 per year.

Required

Determine the breakeven 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. Use the contribution margin ratio approach.

d. Prepare a contribution margin income statement for the breakeven sales volume