Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $150 per unit. Variable expenses are $105 per stove, and fixed expenses associated with the stove total $202,500 per month.

Question Required:

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

Break-even point in unit sales not attempted

Break-even point in dollar sales

At Present , the company is selling 15, 000 stoves per month . The sales manager is convinced that a 10%' reduction in the Selling price would result in a 25%'0 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 Contribution Income Statement Present Proposed 15, 000| Stove's Stoves Total Per unit Total Per unit