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Outback Outfitters sells recreational equipment. One of the companys products, a small camp stove, sells for $130 per unit. Variable expenses are $91 per stove,
Outback Outfitters sells recreational equipment. One of the companys products, a small camp stove, sells for $130 per unit. Variable expenses are $91 per stove, and fixed expenses associated with the stove total $175,500 per month. Need Help: Please Be Precise! Thank You
Outback Outfitters sells recreational equipment One of the company's products, a small camp stove, sells for $130 per unit. Variable expenses are $91 per stove, and fixed expenses associated with the stove total S175,500 per month. Required 1. Compute the company's break-even point in unit sales and in dollar sales. reak-Even Point Number of stoves Total sales dollars 2. 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 that the fixed expenses remain unchanged.) Higher break-even point Lower break-even point 3. At present, the company is selling 16,000 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. Outback Outfitters Present Proposed 16,000 Stoves toves Total Per unit Total Per unitStep by Step Solution
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