o a https:// Chapter 5 HW Set 2 3 Outback Outitters sells recreational equipment. One of the company's products, a small camp stove, sells for $50 per unit. Variable expenses are $32 per stove, and fixed expenses associated with the stove total $108.000 per month. Required: 1. What is the break-even point in unit sales and in dollar sales? 20 2. If the variable expenses per stove increase as a percentage of the selling price, will t result in a higher or a lower break-even point? (Assume that the fixed expenses remain unchanged.) 3. At present, the c 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. is selling 8,000 stoves per month. The sales manager is convinced that a 10% reduction in the selling price Print Reterences 4. Refer to the data in (3) above. How many stoves would have to be sold at the new selling price to attain a target profit of $35,000 per month? Complete this question by entering your answers in the tabs below What is the break-even point in unit sales and in dollar sales? Required 2 > Prev 3 of 4 Next > 3 per month? Complete this question by entering your an in the tabs bel At present, the company is selling 8,000 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 chan Con on 0 0 Required 2 Required 4 3 Requirea: 1. What is the break even point in unit sales and in dollar sales? the variable expenses per stove increase as a percentage of the selling price. will t result in a higher or a lower break-e Assume that the fixed expenses remain unchanged.) 3. At present, the company is selling 8,000 stoves per month. The sales manager is convinced that a 10% reduction in the se would result in a25% increase in monthly sales of stoves. Prepare two contribution format income statements, one under pre operating conditions, and one as operations would appear after the proposed changes. 4. Refer to the data in (3) above. How many stoves would have to be sold at the new selling price to attain a target profit of $ per month? 20 Complete this question by entering your answers in the tabs below Required 4 Cedter to the dato In Resuired 3, how many stoves woud have to be sold an the nesw selling price to a tat i rget profit of Prev3 of 4 Next > O Type here to search