Example $1$: Break$-$Even Analysis for a New Product Line

Question: Praveen Company is considering launching a new product line, Product Z$.$ The fixed costs associated with this product line are estimated to be $$120,000$ per year. The variable cost per unit is projected to be $$15,$ and the selling price per unit is $$25.$ The company wants to determine the break$-$even point in both units and sales dollars. Additionally, they wish to calculate the sales required to achieve a target profit of $$30,000.$ How many units of Product Z must be sold to break even, and how many units must be sold to achieve the target profit? Provide the step$-$by$-$step calculations for both the break$-$even point and the sales required for the target profit.