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Ritchie Manufacturing Company makes a product that it sells for $160 per unit. The company...

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Question

Accounting

Ritchie Manufacturing Company makes a product that it sells for $160 per unit. The company incurs variable manu
$73 per unit. Variable selling expenses are $15 per unit, annual fixed manufacturing costs are $456,000, and fixed
administrative costs are $278,400 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. Prepare a contribution margin income statement for the break-even sales volume.
Complete this question by entering your answers in the tabs below.
Req A to B
Determine the break-even point in units and dollars using the equation method and the contribution margin per unit
approach.
image

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