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    Contribution margin income statement

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    Inman Manufacturing Company makes a product that it sells for $60 per unit. The company incurs variable manufacturing costs of $24 per unit. Variable selling expenses are $12 per unit, annual fixed manufacturing costs are $189,000, and fixed selling and administrative costs are $141,000 per year.

    Determine the break-even point in units and dollars using the following approaches.

    a. Equation method
    b. Contribution margin per unit
    c. Contribution margin ratio
    d. Confirm your results by preparing a contribution margin income statement for the break-even sales volume

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    Determining the break-even point and preparing a contribution margin income statement
    Inman Manufacturing Company makes a product that it sells for $60 per unit. The company incurs variable manufacturing costs of $24 per unit. Variable selling expenses are $12 per unit, annual fixed manufacturing costs are $189,000, and fixed selling and administrative costs are $141,000 ...

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    Solution discusses the contribution margin income statement

    $2.49

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