Ritchie 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.

Required

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

1. Use the equation method.

2. Use the contribution margin per unit approach.

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

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

RITCHIE MANUFACTURING COMPANY
Contribution Margin Income Statement