Help Save & Exit .. ULIMI UNICI JUC Check 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 13,000 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 $80,000 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 13,000 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 13,000 Stoves Total Per unit $ 1,430,000 $ 110 77 Proposed Stoves Total Per unit $ 99 77 Sales Variable expenses 33 22 0 $ 1.430,000 $ 155,100 1.274,900 155, 100 (155, 100) $ Fixed expenses Net operating income $ 2 of 5 Outback Outfitters sells recreational equipment. One of the company's products, a small comp stove, sots for $110 per unit. Variable expenses are $77 per stove, and fixed expenses associated with the stove total $155.900 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, wil 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 13,000 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 $80.000 per month? Complete this question by entering your answers in the tabs below. Required 4 Required 3 Required 1 Required 2 At present, the company is selling 13,000 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 Outback Outfitters Proposed Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove.wels torno de unt expenses are $77 per stove, and fixed expenses associated with the stove total $155.500 per month Required: 1. What is the break-even point in unt 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 lower (Assume that the fixed expenses remain unchanged) 3. At present, the company is selling 13,000 stoves per month. The sales manager is convinced that a 10% reduction would result in a 25% increase in monthly sales of stoves. Prepare two contribution format income statements, one or 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 ontain a target pretto S. per month? 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 protect $80,000 per month? (Round up your final answer to the nearest unit.) Unit sales needed to attain the target profit