Problem 1. (Adapted from AccountingforManagemant.org) Your friends started Cool Cat, Inc. three years ago and ask for your help in assessing their business from a financial standpoint. Cool Cat, Inc. sells parasailing rides to beach tourists in Florida for $80 per 15 minute ride above the beaches. The cost of labor and fuel for each ride is $36. In addition, Cool Cat pays the sales person $14 commission for each ride sold and hires college students to generate sales. Fixed annual expenses are $600,000, mainly for insurance, advertising, boats and equipment. The Company sold about 20,000 rides in the first two years of business. It targets 25,000 rides for 202x, which ends on December 31,202x. Cool Cat projects that it will sell 30,000 rides at the most. Required: a. Compute the break-even point in units. b. Compute the break-even point in sales dollars. c. Using the graph paper provided, prepare a professional-looking breakeven graph. (Use unit sales increments of 5,000 and dollar sales increments of $250,000 ). d. Prepare a contribution-format income statement at break-even. e. What are profits if the company sells 25,000 rides? f. Write a paragraph that discusses the results of your assessments and your recommendation regarding Cool Cat, Inc. as a viable business