Outback Outfitters sells recreational equipment. One of the companys products, a small camp stove, sells for $120 per unit. Variable expenses are $84 per stove, and fixed expenses associated with the stove total $169,200 per month.

At present, the company is selling 14,000 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. Fill in the blanks

Outback Outfitters Contribution Income Statement Present 14,000 Stoves Total Per unit Proposed Stoves Total Per unit Sales 1 0 $ 0 0 $ 0 $ $ 0