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Outback Outfimers seis recreational equipment. One of the company's products, a small camp stove, ses for 590 per unit Variable expenses are $63 per stove,
Outback Outfimers seis recreational equipment. One of the company's products, a small camp stove, ses for 590 per unit Variable expenses are $63 per stove, and fored expenses associated with the stove total 5126.900 per month Required: 1 What is the break even point in unt sales and in dotar sales? 2 the variable expenses per stove increase as a percentage of the seang once wiat result in a higher or a lower break-even point? (Assume that the fored expenses remain unchanged) 3. At present the company is seeing 20.000 stoves per month The sales manager is convinced that a 10% reduction in the seang price would result in a 25% increase in monthly sales of stoves Prepare two contration format income statements, one under present operating conditions, and one as operations would appearater the proposed changes 4 Refer to the data in Required 3. How many stoves would have to be sold at the new seg pnce to attain a target profit of $70,000 per month
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