Problem 11-28 Determining the break-even point and preparing a contribution margin income statement LO 11-3, 11-5 Lucent Manufacturing Company makes a product that it sells for $63 per unit. The company incurs variable manufacturing costs of $20 per unit. Variable selling expenses are $18 per unit, annual fixed manufacturing costs are $185,000, and fixed selling and administrative costs are $155,750 per year.

Required Determine the break-even point in units and dollars using each of the following approaches: a. Equation method. b. Contribution margin per unit. c. Prepare a contribution margin income statement for the break-even sales volume.