Ritchie Manufacturing Company makes a product that it sells for $$130$ per unit. The company incurs variable manufacturing costs of $$66$ per unit. Variable selling expenses are $$12$ per unit, annual fixed manufacturing costs are $$450,000,$ and fixed selling and administrative costs are $$226,000$ per year.

Required

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

Use the equation method.

Use the contribution margin per unit approach.

Use the contribution margin ratio approach.

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