Outback Outlitters sells recreational equipment. One of the company's products a small camp stoves for $130 per Vare expenses are $91 per slove, and fixed expenses associated with the stove total $156,000 per month Required: 1. What is the break even point in unit sales and indoor sales? 2 if the variable expenses per stove increase as a percentage of the setting price, will it result in a higher or a lower break even (Assume that the foed expenses remain unchanged) 3. At present, the company is selling 17000 stoves per month The sales manager is convinced that a 10% reduction in the sing price would result in a 25% increase in monthly sales of stoves. Prepare two contribution format income statements, one under present operating conditions, and one os operations would appear after the proposed changes 1. Refer to the data in Required 3. How many stoves would have to be sold at the new selling price to attain a target proof 529.000 per month Complete this question by entering your answers in the tabs below. Requwed 1 Requiret 2 Red Required 4 At present, the company is selling 17,000 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 stovesPrepare two contribution format income statements one under present operating conditions, and one as operations would appear after the proposed changes Contribution focome Statement Outback Outfitters Present 17 000 Stove Total Petunit 5 130 911 Proposed Sloves Total Par unit 117 91 Sales Vanable expenses O Care 5 6 7 8 9 O E R T T Y O D F G H. J K L MOOSE ssignment 5 Menlo Company distributes a single product. The company's sales and expenses for last month follow: Sales Variable expenses Contribution margin Fixed expenses Net operating income Total $ 600,000 425,600 182,400 142.600 $ 34,00 $10 28 $ 12 1 nes Required: 1. What is the monthly break even point in unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin at the break even point? 3-a. How many units would have to be sold each month to attain a torget profit of $74.400? 3.b. Verily your answer by preparing a contribution format income statement at the target sales level 4. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. 5. What is the company's CM ratio of the company can sell more units thereby increasing sales by $98.000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase? Complete this question by entering your answers in the tabs below. Regi Reg 2 Reg 3A Req 3B Reg 4 Reg 5 Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. (Round your percentage answer to 2 decimal places (L. 0.1234 should be entered as 12 34). Dollars Percentage
