Determining the break-even point and preparing a contribution

margin income statement

Lucent Manufacturing Company makes a product that it sells for $75 per unit. The company

incurs variablemanufacturing costs of$30 per unit. Variable selling expenses are $9 per unit,

annual fixed manufacturing costs are $240,000, and fixed selling and administrative costsare

$165,000 per year.

Required

Determine the break-even point in units and dollars using each of the following approaches:

a.

Equation method.

b.

Contribution margin per unit.

c.

Confirm your results bypreparing a contribution margin income statement for the break-

even sales volume.

Answer must be in Excel and formulas are required

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