EXERCISE 5-17 Break-Even and Target Profit Analysis (L05-4, LOS-5, LO5-6] Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sell for $50 per unit. Variable expenses are $32 per stove, and fixed expenses associated with the stove to $108,000 per month Required: Required: 1. Compute 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 real 3. At present, the company is selling 8.000 stoves per month. The sales manager is convince or a lower break-even point? Why? (Assume that the fixed expenses remain unchanged.) reduction in the selling price would result in a 25% increase in monthly sales of stoves, contribution format income statements, one under present operating conditions, and otca would appear after the proposed changes, Show both total and per unit data on your staden 4. Refer to the data in (3) above. How many stoves would have to be sold at the new selling TAKE TWO Variable expenses = $45 per stove a minimum net operating income of $35,000 per month