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Ritchie Manufacturing Company makes a product that it sells for $160 per unit. The company incurs variable manufacturing costs of $84 per unit. Variable selling
Ritchie Manufacturing Company makes a product that it sells for $160 per unit. The company incurs variable manufacturing costs of $84 per unit. Variable selling expenses are $12 per unit, annual xed manufacturing costs are $470,000, and xed selling and administrative costs are $208,400 per year. Required Determine the breakeven point in units and dollars using each of the following approaches: 3. Use the equation method. b. Use the contribution margin per unit approach. c. Prepare a contribution margin income statement for the breakeven sales volume. Complete this question by entering your answers in the tabs below. Req A to B Req C Determine the break-even point in units and dollars using the equation method and the contribution margin per unit approach. 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
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