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Chap 2 HW duction to l Sign Servi Outback Outfitters se recreation equipment. One of the company's products, a small cemfor $740 expenses are
Chap 2 HW duction to l Sign Servi Outback Outfitters se recreation equipment. One of the company's products, a small cemfor $740 expenses are $98 per stove, and ed expenses associated with the stove total $168.000 per Required: 1. What is the break-even point unit sales and in dollar sales? 2. If the variable expenses prstove increase as a percentage of the selling price, will it result in a higher of a lower boven bort? (Assume that the foed exponses remain unchanged) 3. At present, the company is selling 19,000 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 seling price to attain a target profit of $74,000 per month? Complete this question by entering your answers in the tabs below. Required 3 Required 4 What is the break-even point in unit sales and in dollar sales? Break-even point unit sales Break-even point dollar sales Required 2 > THE Subt my work
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