Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $140 per unit. Variable expenses are $98 per stove, and fixed expenses associated with the stove total $201.600 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 20,000 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 $79,000 per month? Required 1 his question by entering your answers in the tabs below. Requiged 1 Required 2 Required 3 Required 4 What is the break even point in unit sales and in dollar sales? Break-even point in unit Sales Break-even pont in d a ss 672 000 Required 2 > Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $140 per un expenses are $98 per stove, and fixed expenses associated with the stove total $201,600 per month 2018 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 (Assume that the fixed expenses remain unchanged.) 3. At present, the company is selling 20,000 stoves per month. The sales manager is convinced that a 10% reduction in the price would result in a 25% Increase in monthly sales of stoves. Prepare two contribution format Income statements, one un 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 o per month? Complete this questi 9 your answers in the tabs below. Required 3 rences Required 1 Required 2 Required 3 Required 4 At present, the company is selling 20,000 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. Contribution Income Statement Proposed Outback Outfitters Present 20,000 Stoves Total Per unit Stoves Total Per unit Sales o $ 0 Required 2 Required 4 > Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $140 per unit Variable expenses are $98 per stove, and fixed expenses associated with the stove total 5201,600 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 20,000 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 $79,000 per month? Complete this question by entering yo Recured the tabs below. Required 1 Required 2 Required 3 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 $79,000 per month? (Round up your final answer to the nearest unit.) Unit sales needed to attain the target profil
