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

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Outback Outfitters selis recreational equipment. One of the company's products. a small camp stove, sells for $100 per unit Variable expenses are $70 per stove, and fixed expenses associated with the stove total \$135,000 per month Required: 1. What is the break-even point in unit sales and in dollar saies? 2. If the variable expenses per stove increase as a percentage of the selling price, will it result in a higher or al iower brekakeven point? (Assume that the fixed expenses remain unchanged) 3. At present, the comparty is selling 12,000 stoves per month. The soles manager is convinced that a 10\%6 reduction in the selling price would resuit in a 25% increase in monthly sales of stoves. Prepare two contribution formot income statements, on under present operating conditions, and one as operations would appear after the proposed changes. 4. Refer to

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