Oliver Cat Emporium, Inc. sells cat toys and cat trees. They want to introduce a new product line and need to do an analysis to determine whether it will be profitable. The product will sell for $130/unit and the variable cost per unit is $40. The product line's monthly fixed expenses are $27,000.

Required: A. What is the companys break-even point in units?

B. What is the companys break-even point in dollars?

C. How many units will Oliver need to sell in order to reach a target profit of $65,000?

D. What dollar sales will Oliver need in order to reach a target profit of $155,000? E. Construct a contribution margin income statement reflecting $260,000 in sales volume and fixed expenses are $77,000.