10Ritchie Manufacturing Company makes a product that it sells for $160 per unit. The company incurs variable manufacturing costs of$84 per unit. Variable selling expenses are $12 per unit, annual fixed manufacturing costs are $470,000, and fixed selling andadministrative costs are $208,400 per year.RequiredDetermine the break-even point in units and dollars using each of the following approaches:Skippeda. Use the equation method.b. Use the contribution margin per unit approach.c. Use the contribution margin ratio approach.d. 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 CReq DDetermine the break-even point in units and dollars using the equation method, the contribution margin per unit approachand the contribution margin ratio approach.a. Break-even point in unitsBreak-even point in dollarsb.Contribution margin per unitBreak-even point in unitsBreak-even point in dollarsC.Contribution margin ratio%Break-even point in unitsBreak-even point in dollarsReq D >

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Description: 10Ritchie Manufacturing Company makes a product that it sells for $160 per unit. The company incurs variable manufacturing costs of$84 per unit. Variable selling expenses are $12 per unit, annual fixed manufacturing costs are $470,000, and fixed sel

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Ritchie Manufacturing Company makes a product that it sells for $160 per unit. The company incurs variable manufacturing costs of $84 per unit. Variable selling expenses are $12 per unit, annual fixed manufacturing costs are $470,000, and fixed selling and administrative costs are $208,400 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. Use the contribution margin ratio approach.

Ritchie Manufacturing Company makes a product that it sells for $160 per unit. The company incurs variable manufacturing costs of $84 per unit. Variable selling expenses are $12 per unit, annual fixed manufacturing costs are $470,000, and fixed selling and administrative costs are $208,400 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. Use the contribution margin ratio approach.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7PA: Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model...

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Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and variable costs for these three models are as follows: The current product mix is 4:3:2. The three models share total fixed costs of $430,000. Calculate the sales price per composite unit. What is the contribution margin per composite unit? Calculate Manatoahs break-even point in both dollars and units. Using an income statement format, prove that this is the break-even point.
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