Ritchie Manufacturing Company makes a product that it sells for $200 per unit. The company incurs variable manufacturing costs of $101 per unit. Variable selling expenses are $19 per unit, annual fixed manufacturing costs are $464,000, and fixed selling and administrative costs are $256,000 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.