Problem:
Inman Manufacturing Company makes a product that it sells for $61 per unit. The company incurs variable manufacturing costs of $19 per unit. Variable selling expenses are $17 per unit, annual fixed manufacturing costs are $190,000, and fixed selling and administrative costs are $152,250 per year.
Required:
Question 1: Determine the break-even point in units and dollars using equation method.
Question 2: Determine the break-even point in units and dollars using contribution margin per unit.
Question 3: Determine the break-even point in units and dollars using contribution margin ratio.
Question 4: Prepare a contribution margin income statement for the break-even sales volume.
Note: Please provide through step by step calculations.