Check Figure

a$.10,000$ units

Problem $3-17$A Determining the break$-$even point and preparing a contribution margin income statement

Ritchie Manufacturing Company makes a product that it sells for $\backslash (\backslash$$ $150\backslash )$ per unit. The company incurs variable manufacturing costs of $\backslash (\backslash$$ $60\backslash )$ per unit. Variable selling expenses are $\backslash (\backslash$$ $18\backslash )$ per unit, annual fixed manufacturing costs are $\backslash (\backslash$$ $480,000\backslash ),$ and fixed selling and administrative costs are $\backslash (\backslash$$ $240,000\backslash )$ 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$.$ Confirm your results by preparing a contribution margin income statement for the break$-$even sales volume.