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1 problem - 4 areas to solve as per images. Instant great feedback will be left if perfect. Please ensure boxes are submitted as per
1 problem - 4 areas to solve as per images. Instant great feedback will be left if perfect.
Please ensure boxes are submitted as per the tables so it's easy to input.
Exercise 5-17 (Algo) Break-Even and Target Profit Analysis [LO5-4, LO5-5, LO5-6] Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $130 per unit. Variable expenses are $91 per stove, and fixed expenses associated with the stove total $163,800 per month. Required: 1. What is the break-even point in unit sales and in dollar sales? 2. If the variable expenses per stove increase as a percentage of the selling price, will it result in a higher or a lower break-even point? (Assume that the fixed expenses remain unchanged.) 3. At present, the company is selling 18,000 stoves per month. The sales manager is convinced that a 10% reduction in the selling price would result in a 25% increase in monthly sales of stoves. Prepare two contribution format income statements, one under present operating conditions, and one as operations would appear after the proposed changes. 4. Refer to the data in Required 3. How many stoves would have to be sold at the new selling price to attain a target profit of $75,000 per month?Required 1 Required 2 Required 3 Required 4 What is the breakeven point in unit sales and in dollar sales? Breakeven paint in unit sales _ Breakeven paint in dollar sales _ Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 If the variable expenses per stove increase as a percentage of the selling price, will it result in a higher or a lower break-even point? (Assume that the fixed expenses remain unchanged.) Higher break-even point OLower break-even pointRequired 1 Required 2 Required 3 Required 4 At present, the company is selling 18,000 stoves per month. The sales manager is convinced that a 10% reduction in the selling price would result in a 25% increase in monthly sales of stoves. Prepare two contribution format income statements, one under present operating conditions, and one as operations would appear after the proposed changes. Outback Outfitters Contribution Income Statement Stoves - Present Stoves - Proposed 18,000 Total Per unit Total Per unit 0 $ 0 0 $ 0 $ 0 $ 0Required 1 Required 2 Required 3 Required 4 Refer to the data in Required 3. How many stoves would have to be sold at the new selling price to attain a target profit of $?5,0DD per month? (Round up your nal answer to the nearest unit.)Step by Step Solution
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