Lucent Manufacturing Company makes a product that it sells for$70 per unit. The company incurs variable manufacturing costs of$21 per unit. Variable selling expenses are $10 per unit, annualfixed manufacturing costs are $195,000, and fixed selling andadministrative costs are $334,230 per year. Required: Determine thebreak-even point in units and dollars using each of the followingapproaches:
a. Equation method.
break-even point in units
break-even points in dollars
b. contribution margin per unit
contribution margin per unit
break-even points in units
break-even points in dollars
c. contribution margin ratio
contribution margin ratio
break-even points in dollars
break-even points in units
d. Lucent manufacturing company
contribution margin income statement
Lucent Manufacturing Company makes a product that it sells for$70 per unit. The company incurs variable manufacturing costs of$21 per unit. Variable selling expenses are $10 per unit, annualfixed manufacturing costs are $195,000, and fixed selling andadministrative costs are $334,230 per year. Required: Determine thebreak-even point in units and dollars using each of the followingapproaches:
a. Equation method.
break-even point in units
break-even points in dollars
b. contribution margin per unit
contribution margin per unit
break-even points in units
break-even points in dollars
c. contribution margin ratio
contribution margin ratio
break-even points in dollars
break-even points in units
d. Lucent manufacturing company
contribution margin income statement
