You are the new cost accountant for ABX Corporation. After careful review of the companys operations you have been tasked to determine the companys break-even point, the numbers sold to meet the companys target profit and contribution income statement for both outcomes. Management has also asked that you provide the pros and cons for variable, traditional and activity-based costing method. After providing the pros and cons of each method recommend one method for the companys use and support your discussion.

Companys Data:

ABX Corporation sold 450,000 units at $75/unit. Fixed cost are $5,300,000 per year. Variable costs are $45 per unit. ABX Corporation desires a target profit of $6,500,000 per year.