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 fixed manufacturing costs are $470,000, and fixed selling and administrative costs are $208,400 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. Prepare a contribution margin income statement for the break-even sales volume.

Section A

Break-even point in units = 10,600

Break-even point in dollars=

Section B

Contribution margin per unit=

Break-even point in units = 10,600

Break-even point in dollars=

Section C Contribution Margin Income Statement