Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can i pls get all required parts asap question due in 30min tysm!! Outback Outfitters selis a small camp stove for $100 per unit. Variable

can i pls get all required parts asap question due in 30min tysm!!
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Outback Outfitters selis a small camp stove for $100 per unit. Variable expenses are $70 per unit, and fixed expenses total $129,000 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 the fixed expenses remain unchanged.) 3. At present, the company is selling 16,000 stoves per month. The 5ales manager is convinced a 10% reduction in the selling price would result in a 25% increase in unit sales. Prepare two contribution format income statements, pne 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 $73,000 permonth? Complete this question by entering your answers in the tabs below. What is the break-even point in unit sales and in dollar sales? (Assume the nxed experises remair uncranged.) 3. At present, the company is selling 16,000 stoves per month. The sales manager is corvinced a 10% reduction in the selling price would result in a 25% increase in unit sales, 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 $73,000 per month? Complete this question by entering your answers in the tabs bolow. If the variable expenses per stove increase as a percentage of the seliling price, will it result in a higher or a lower break-even point? (Assume the fixed expenses remain unchanged.) Complete this question by entering your answers in the tabs below. At present, the company is selling 16,000 stoves per month. The soles manager is convinced a 10% reduction in the selling price would result in a 25% increase in unit sales. Prepare two contribution format income statements, one under present operating conditions, and one as operations would nppear after the proposed changes. 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 $73,000 per month? Complete this question by entering your answers in the tabs below. 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 $73,000 per month? Note: Round up your final answer to the nearest unit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting

Authors: Mark Lee Inman

1st Edition

0434908304, 9780434908301

More Books

Students also viewed these Accounting questions

Question

Compute F for the following diagram. 300 250 200 150 100 5 12%

Answered: 1 week ago