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Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $110 per unit. Variable expenses are $77 per stove,

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Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $110 per unit. Variable expenses are $77 per stove, and food expenses associated with the stove total 5141,900 per month Required: 1. Compute the company's break-even point in unit sales and in dollar sales Evan Number of seves Total sales dollars 2. If the variable expenses per stove increase as a percentage of the selling price will it result in a higher or a lower break even point? (Assume that the food expenses remain unchan Higher break even point Lower break-even point 3. At present, the company is selling 18,000 stoves per month. The sales manager is convinced that a 10% reduction in the sering price would result in a 25% increase in monthly sale stoves. Prepare two contribution format income statements, one under present operating conditions, and one as operations would appear after the proposed changes Outback Outfitters Present 18.000 Stoves - Total Perunit Proposed Stoves Total Porunt S 00$ aweRulol

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