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One of the company's products, a small camp stove, sells Outback Outfitors for $110 per unit. Variable expenses are $77 per stove, and fixed expenses

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One of the company's products, a small camp stove, sells Outback Outfitors for $110 per unit. Variable expenses are $77 per stove, and fixed expenses associated with the stove total $151,800 per month. Required: 1. Compute the company's break-even point in unit sales and in dolar sales Number of stoves Total sales dollars 2 lf the variable expenses por stove increase as a perontage of the selling price, will it result in a higher or a lower break-even point? (Assume that the fixed expenses remain unchanged.) 0 Higher break-even point O Lower break-even point 3, At present, the company is selling 18,000 stoves per month. The sales manager is convinced that a 10% reduction in the seling 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 Present Proposed 18,000 Stoves Stoves Total Per unit Total Per unit ok

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