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QUESTION 3 Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for RM50 per unit. Variable expenses are RM32
QUESTION 3 Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for RM50 per unit. Variable expenses are RM32 per stove and fixed expenses associated with the stove total RM108,000 per month. Required: a. What is the break-even point in unit sales and in dollar sales? b. 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 the fixed expenses remain unchanged)
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