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At present, the company is selling 15,000 stoves per month. The sales manager is convinced that a 10% reduction in the selling price would result
At present, the company is selling 15,000 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 Present Proposed 15,000 Stoves Stoves Total Per unit Total Per unit Sales Variable expenses Contribution margin Fixed expenses Net operating income 0 $0 0 0
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