Outback Outfitters sells a small camp stove for $$100$ per unit. Variable expenses are $$70$ per unit, and fixed expenses total $$123,000$ per month.

Required:

What $is$ the break$-$even point $in$ unit sales and $in$ dollar sales?

$If$ the variable expenses per stove increase $as$ a percentage $of$ the selling price, will $it$ result $in$ a higher $or$ a lower break$-$even point? $(Assume$ the fixed expenses remain unchanged.$)$

$At$ present, the company $is$ selling $11,000$ stoves per month. The sales manager $is$ convinced $a10\%$ reduction $in$ the selling price would result $ina25\%$ increase $in$ unit sales. Prepare two contribution format income statements, one under present operating conditions, and one $as$ operations would appear after the proposed changes.

Refer $to$ the data $in$ Required $3.$ How many stoves would have $tobe$ sold $at$ the new selling price $to$ attain a target profit $of$ $$75,000$ per month? $At$ present, the company $is$ selling $11,000$ stoves per month. The sales manager $is$ convinced $a10\%$ reduction $in$ the selling price would result $ina25\%$ increase $in$ unit sales. Prepare two contribution format income statements, one under present operating conditions, and one $as$ operations would appear after the proposed changes.