Reveen Products sells camping equipment. One of the companys products, a camp lantern, sells for $90 per unit. Variable expenses are $63 per lantern, and fixed expenses associated with the lantern total $129,600 per month.

Reveen Products sells camping equipment. One of the company's products, a camp lantern, sells for $90 per unit. Variable expenses are $63 per lantern, and fixed expenses associated with the lantern total $129,600 per month. Required. 1. Compute the company's break-even point in number of lanterns and in total sales dollars. (Omit the "S' sign in your response.) Number of lanterns Total sales dollars 2. If the variable expenses per lantern increase as a percentage of the selling price, will it result in a higher or a lower break-even point? (Assume that the fixed expenses remain unchanged.) Higher break-even point Lower break-even point 3. At present, the company is selling 19,000 lanterns per month. The sales manager is convinced that a 10% reduction in the selling price will result in a 25% increase in the number of lanterns sold each month. Prepare two contribution format income statements, one under present operating conditions, and one as operations would appear after the proposed changes. (Input all amounts as positive values except losses which should be indicated by a minus sign.Omit the "$" sign in your response.) Proposed Present 19,000 lanterns lanterns Total Per Unit Total Per Unit (Click to select) (Click to select) (Click to select) (Click to select) (Click to select)