Determine the break-even point in units


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 full description.

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Accounting Basics: Determine the break-even point in units
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