The following information has been provided:

Price per unit (P) $25

Variable cost per unit (AVC) $5

Total fixed costs (TFC) $400,000

Target profit $600,000

Determine the following:

Break-even in units

Break-even in dollars Sales in units required to achieve the target profit Revenues required to achieve the target profit Construct an Income Statement in Contribution Margin Format when 40,000 units are sold.