Reid Company is considering the production of a new product. Theexpected variable cost is $27 per unit. Annual fixed costs areexpected to be $810,000. The anticipated sales price is $72each.
Determine the break-even point in units and dollars using eachof the following:
a. Use the equation method.
b. Use the contribution margin per unit approach.
c. Use the contribution margin ratio approach. (Do notround intermediate calculations. Round "Contribution margin ratio"to 1 decimal place. (i.e., .234 should be entered as23.4))
Use the equation method.
