Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $100 per unit. Variable expenses are $70 per stove, and fixed expenses associated with the stove total $126,000 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 seling price, will it result in a higher or a lower break-even point (Assume that the fired expenses remain unchanged.) 3. At present, the company is selling 12.000 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 Required 3. How many stoves would have to be sold at the new selling price to attain a target profit of $73,000 per month? Complete this question by entering your answers in the tabs below. Required Required 2 Required 3 Required 4 What is the break-even point in unit sales and indoor sales? Broeven point in unitas Break even point in dollar sales FS 7 FB TV3 * 2 # 3 A + % 5 & 7 6 8 9 0 W E R T Y U keven and Target Profit Analysis Her Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $100 per unit. Variable expenses are $70 per stove, and fixed expenses associated with the stove total $126,000 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 fled expenses remain unchanged) 3. At present the company is seling 12,000 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 Required 3. How many stoves would have to be sold at the new selling price to attain a target profit of $73,000 per month? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required) 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 $73,000 per month (Roundup your final arwer to the nearest unit)
