Tip-Top Company manufactures and markets several products. Management is considering the future of one product, electronic keyboards, which has not been as profitable as planned. Since this product is manufactured and marketed independently of the other products, its total costs can be precisely measured. Next years plans call for a $175 selling price per unit. The fixed costs for the year are expected to be $420,000, up to a maximum capacity of 40,000 units. Forecasted variable costs are $105 per unit. Directions: 1. Calculate the keyboards breakeven point in both units & dollars (show calculations).

2. Prepare a contribution margin income statement for the product at the breakeven point (show calculations).

3. Tip-Top Company is interested in determining the number of units it must sell in order to earn a target income of $2,000,000. Determine the number of units needed to earn the target income. Also determine the sales dollars required to earn the target income. 4. Prepare a contribution margin income statement for the sales required to a target income of $2,000,000 (show all calculations units & dollars).