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Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $130 per unit: Variable expenses are $91 per stove,

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Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $130 per unit: Variable expenses are $91 per stove, and fixed expenses associated with the stove total $175,500 per month. Required: 1. What is the break-even point in unit salos and in dollar sales? 2. If the variable expenses per stove increase as a percentage of the selting price, will it result in a higher or a Iower break-even point? (Assume that the fixed expenses remain unchanged.) 3. At present, the company is selling 11,000 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 undor 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. Refer to the data in Required 3. How many stoves would have to be sold at the new selling price to atiain a target profit of $73,000 per month? (Round up your final answer to the nearest unit:) If the variable expenses per stove increase as a percentage of the point? (Assume that the fixed expenses remain unchanged.) Higher break-even point Lower break-even point $73,000 per month? (Round up your final answer to the nearest unit.)

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