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Outback Outfitters selis recreational equipment. One of the company's products, a small camp stove, selis for $100 per unit. Variabie expenses are $70 per stove,

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Outback Outfitters selis recreational equipment. One of the company's products, a small camp stove, selis for $100 per unit. Variabie expenses are $70 per stove, and fixed expenses associated with the stove total $123,000 per month. Required: 1. What is the breakeven point in unit sales and in dollar sales? 2. If the variable expenses per stove increase as a percentoge of the selling price, will it result in a higher or a lower breakieven point? (Assume that the fixed expenses remain unchanged) 3. At present, the company is selling 11,000 stoves per month. The sales monager is corvinced 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 appeor after the proposed changes. 4. Refer to the data in Required 3. How many stoves would have to be sold at the new 5 elling price to attain a target profit of $73,000 per month? What is the break-even point in unit sales and in dollar sales? 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. 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 per month? Answer is not complete. Complete this question by entering your answers in the tabs below. 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.)

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