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Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $50 per unit. Variable expenses are $32 per stove,

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Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $50 per unit. Variable expenses are $32 per stove, and fixed expenses associated with the stove total $108,000 per month. Required: 1. What is the break-even point in unit sales and in dollar sales? 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.) 3. At present, the company is selling 8,000 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. 4. Refer to the data in (3) above. How many stoves would have to be sold at the new selling price to attain a target profit of $35.000 per month? * Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. What is the break-even point in unit sales and in dollar sales? 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 Assume that the fixed expenses remain unchanged.) 3. At present, the company is selling 8,000 stoves per month. The sales manager is convinced that a 10% redt would result in a 25% increase in monthly sales of stoves. Prepare two contribution format income statements operating conditions, and one as operations would appear after the proposed changes. 4. Refer to the data in (3) above. How many stoves would have to be sold at the new selling price to attain a ta per month? Complete this question by entering your answers in the tabs below. At present, the company is selling 8,000 stoves per month. The sales manager is convinced that a 10% reduction in selling price would result in a 25% increase in monthly sales of stoves. Prepare two contribution format income state one under present operating conditions, and one as operations would appear after the proposed changes. efer 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 35,000 per month

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