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Exercise 5-17 Break-Even and Target Profit Analysis [LO5-4, LO5-5, LO5-6 Outback Outiters sells recreational equipment. One of the company's products, a small camp stove, sells for $50 per unit. Variable expenses are $32 per stove, and fixed expenses associated with the stove total $108,000 per month Required 1. What is the break-even point in unit sales and in dollar sales? 2. f the variable expenses per stove increase as a percentage of the selling price, will t result in a higher or a lower break-even point? (Assume that the fixed expenses remain unchanged.) 3. At present, the company is selling 8,000 stoves per month. The sales manager is convinced that a 10% red would result in a 25% increase in monthly sales of stoves. Prepare two contribution format income statements, or operating conditions, and one as operations would appear after the proposed changes selling price resent 4. Refer to the data in (3) above. How many stoves would have to be sold at the new selling price to attain a target profit of $35,000o per month? Complete this question by entering your answers in the tabs below Required 1Required 2 Required 3 Required 4 What is the break-even point in unit sales and in dollar sales? Break-even point in unit sales Break-even point in dollar sales Required 1 Required 2> Complete this question by entering your answers in the tabs Blow Required 1 Required 2 Required 3 Required 4 If the variable expenses per stove point? (Assume that the fixed expenses remain unchanged.) increase as a percentage of the selling price, will it result in a higher or a lower break-even Higher break-even point OLower break-even point Required 1 Required 3> Required 1 Required 2 Required 3Required 4 At present, the company is selling 8,000 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 stoves. Prepare two contribution or at income statements, one under present operating conditions, and one as operations would appear after the proposed changes. Outback Outfitters Present Pr ntribution Income Statement toves 8,000 Stoves Total Per Unit Total Per Unit Required 4>