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Required: 1. What is the freak-cven point in unit sales and in dollar sales? 2. If the varlable expenses per stove increase as a percentage

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Required: 1. What is the freak-cven point in unit sales and in dollar sales? 2. If the varlable 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 seling pice would result in a 25% increase in monthily sales of stoves. Prepare two contribution format income staternents, one under present operating condivons, 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 seling price to attaina target profit of $35.000 per month? 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 manth

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