Required: 1. What is the breakipven point in unit sales and in dollar sales? 2. If the variable expenses per stove increase as a percentage of the selling price, will it resuit in a higher or a lower breakeven point? (Assume that the fixed expenses remain unchanged.) 3. At present, the compary is selling 8,000 stoves per month. The sales manager is convinced that a 10x, reduction in the seting price would resut in a 25% increase in monthly sales of stoves. Prepare two contribution format income statements, one under present operating conditions, and one as operations would appear after the proposed changes: 4. Refer to the data in (3) above. How many stoves would bave to be sold at the new selling price to attain a target profit of $35, ooo per month? Complete this question by entering your answers in the tabs below. What is the breakeven point in unit sales and in dolar walet? Required: 1. What is the break-even point in unit sales and in dollar sales? 2. 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 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% reduction in the selling 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 as operations would appear after the proposed changes. 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 $35,000 per month? Complete this question by entering your answers in the tabs below. If the variable expenses per stove increase as a percentage of the selling price, will it result in a higher or a lower breik-even point? (Assume that the fixed expenses remain unchanged.) Complete this question by entering your answers in the tabs below. At present, the company is selling 8,000 stoves per month. The sales manager is convinced that a 10% reduction in the seling 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 as operations would appear after the proposed changes. Complete this question by entering your answers in the tabs below: 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 $35,000 per month? Outback Outfitters 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 dollat sales? 2. 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 that the flxed expenses remain unchanged.) 3. 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 format income statements, one under present operating conditions, and one as operations would appear atter the proposed changes. 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 $35,000 per month? Complete this question by entering your answers in the tabs below
