Question
Outback Outfitters sells recreational equipment. One of the companys products, a small camp stove, sells for $100 per unit. Variable expenses are $70 per stove,
Outback Outfitters sells recreational equipment. One of the companys products, a small camp stove, sells for $100 per unit. Variable expenses are $70 per stove, and fixed expenses associated with the stove total $123,000 per month. Required: 1. Compute the companys 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.) Higher break-even point Lower break-even point
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