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Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $110 per unit Variable expenses are $77 per stove, and fixed expenses associated with the stove total $145,200 per month 01:50:34 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 15.000 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 Required 3. How many stoves would have to be sold at the new selling price to attain a target profit of $77,000 per month? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 At present, the company is selling 15,000 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. Outback Outfitters Contribution Income Statement Present Proposed 18.750 Stoves 15,000 Stoves CICUOC wmurowy OUTCU vircu.repurc ! operating conditions, and one as operations would appear after the pro 4. Refer to the data in Required 3. How many stoves would have to be s per month? Complete this question by entering your answers in the tabs below Required 1 Required 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 4,400 48.400 Required ww uperations would appear after the proposed changes. wie uata in Required 3. How many stoves would have to be sold at the new selling price to attain a target pro -- per month wata in Regu www Complete this question by entering your answers in the tabs below. Required i Required 2 Requlred 3 Required 4 At present, the company is selling 15,000 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. Contribution Income Statement Sales Variable expenses Contribution margin Fixed expenses Net operating income Outback Outfitters Present 15,000 Stoves Total Per unit $ 1.870,000 $ 110 1,309.000 771 561,000 $ 33 145,200 415 800 Proposed 18,750 Stoves Total Per unit 2.103.7505 99 1,636 250 467,500 $ 22 145,200 322,300 Required 2 Required 4 > 3. At present, the company is selling 15,000 stoves per month. The sales would result in a 25% increase in monthly sales of stoves. Prepare two cor operating conditions, and one as operations would appear after the propo 4. Refer to the data in Required 3. How many stoves would have to be sola per month? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Refer to the data in Required 3. How many stoves would have to be sold at the $77,000 per month? (Round up your final answer to the nearest unit.) Unit sales needed to attain the target profit 1,010
