Outfitters ltd manufactures and sells recreational equipment. One of the company products $,$ a small camp stove sells for $$50$ per unit. Variable costs are $$32$ per unit and fixed costs associated with the stove total $$108000$ per month.

Required

a$.)$ Calculate the break$-$even point in units and total sales value

b$.)$ If the variable expenses per stove increase as a percentage of the selling price will it result in a higher or lower break$-$even point, why. $($ Assume fixed cost remain the same$)$

c$.)$ At present the firm is selling $8000$ units 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 the unit. Prepare two Contribution income statements, one under the present conditions, and one for the proposed changes. Show total and per unit data on your statements.

d$.)$ Using the data in $($ c $)$ How many units would have to be sold at the new selling price to yield a net income of $$35000$ per month?