Outback Outfitters sells a small camp stove for $$140$ per unit. Variable expenses are $$98$ per unit, and fixed expenses total $$172,200$

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 $10,000$ stoves per month. The sales manager is convinced a $10\%$ reduction in the selling price

would result in a $25\%$ 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 to be sold at the new selling price to attain a target profit of $$77,000$

per month?

Complete this question by entering your answers in the tabs below.

Required $3$

Required $4$

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 of

$$77,000$ per month?

Note: Round up your final answer to the nearest unit.

Unit sales needed to attain the target profit