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Outback Outfitters sells recreational equipment. One of the companys products, a small camp stove, sells for $110 per unit. Variable expenses are $77 per stove,
Outback Outfitters sells recreational equipment. One of the companys products, a small camp stove, sells for $110 per unit. Variable expenses are $77 per stove, and fixed expenses associated with the stove total $155,100 per month. 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 lower break-even point? (Assume that the fixed expenses remain unchanged.) 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
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