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Cincinnati St. Connect Horny Rainy. Slan in to ou 2 20FA Help Save & Exit Submit 3 Outback Outfitters sells recreational equipment. One of the
Cincinnati St. Connect Horny Rainy. Slan in to ou 2 20FA Help Save & Exit Submit 3 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 $167,700 per month 08:32 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 14.000 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 $74,000 per month? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 At present, the company is selling 14,000 stoves per month. The sales manager is con selling price would result in a 25% increase in monthly sales of stoves. Prepare two com one under present operating conditions, and one as operations would appear after the Outback Outfitters Present Proposed Contribution Income Statement Stoves 14,000 Stoves Total Per unit Total Per unit 0 $ 0 0 $ $ 0 $ 0 Required 4
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