Ritchie Manufacturing Company makes a product that it sells for $$180$ per unit. The company incurs variable manufacturing costs of $$100$ per unit. Variable selling expenses are $$17$ per unit, annual fixed manufacturing costs are $$460,000,$ and fixed selling and administrative costs are $$195,200$ per year.

Required

Determine the break$-$even 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 break$-$even sales volume.

Complete this question by entering your answers in the tabs below.

Req A to C

Determine the break$-$even point in units and dollars using the equation method, the contribution margin per unit approach and the contribution margin ratio approach.

$\backslash$table$[[$a$.$ Break$-$even point in units,$10,400,],[$a$.$ Break$-$even point in dollars,$$,1,872,000,],[$b$.$ Contribution margin per unit,,$],[$b$.$ Break$-$even point in units,,$],[$b$.$ Break$-$even point in dollars,,$],[$c$.$ Contribution margin ratio,$\%,\%$