*** ALL QUESTIONS MUST BE ANSWERED IN FULL DETAIL AS SPECIFICALLY REQUESTED -- IF YOU CANNOT ANSWER ALL PARTS OF ALL 3 QUESTIONS, PLEASE DO NOT ANSWER ***

***ANSWERS MUST BE CLEARLY LABELED WITH SUPPORTING CALCULATIONS NEXT TO IT -- DO NOT JUST FILL IN A TABLE -- THANK YOU ***

The Downstream Company rents kayaks and transports kayaks and customers to and from their kayak trip on a local river. The trip is priced at $20 per person and has a contribution margin ratio of 30%. The companys fixed expenses are $84,000. Last year, sales were $400,000 and profit was $36,000.

a) Provide a definition for break-even analysis, and ALSO explain how a manager would use break-even analysis to enable more effective decision making when you compare your answers from item b to item c, in the next section of this particular problem.

b) Based on the information provided in this problem, how many units need to be sold to break-even?Show all detailed supporting calculations that were used to determine the final number of units that need to be sold for this company to break-even.

c) Based on the information provided in this problem, how many units need to be sold to earn a target profit of $42,000? ALSO you are required to show all detailed supporting calculations that were used to determine the final number of units that need to be sold for this company to earn a profit of $42,000.