Outback Outfitters sells recreational equipment. One of the companys products, a small camp stove, sells for $90 per unit. Variable expenses are $63 per stove, and fixed expenses associated with the stove total $124,200 per month.

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 $76,000 per month?

From #3:

Contribution margin income statement

	Present		Proposed
	Total	Per unit	Total	Per unit
Sales	1080000	90	1215000	81
Variable cost	756000	63	945000	63
Contribution margin	324000	27	270000	18
Fixed cost	124200		124200
Net operating income	199800		145800