Exercise 5-17 Break-Even and Target Profit Analysis (LO5-4, LO5-5, LO5-6) Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $140 per unit. Variable expenses are $98 per stove, and fixed expenses associated with the stove total $205.800 per month 03:59:22 Book 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 11,000 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 $73,000 per month? Pint Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 what is the break-even point in unit sales and in dollar sales? Break-even point in unit Sales Break-even point in dolar sales Required 2 > Required 1 Required 2 Required 3 Required 4 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.) Higher break even point Lower break even point 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 11,000 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. Contribution Income Statement Outback Outfitters Present 11,000 Stoves Total Per unit Proposed Stoves Total Per unit Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 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? (Round up your final answer to the nearest unit.) Unit sales needed to attain the target profit