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Outback Ounftiers solls recrenconnl equipment, One of the comporiy's producis, a small cainp stove, seils for $120 per unit. Variable Aequitad: 1. What is the

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Outback Ounftiers solls recrenconnl equipment, One of the comporiy's producis, a small cainp stove, seils for $120 per unit. Variable Aequitad: 1. What is the Diedk-eveti point in unit sales and vi dellar soles? 2. If the variable expenses per stove increape as a percentape of the soling anice; will it resut in a higher or a lower bicakieves point? (Assume that the fined expenses remain unchanged) 3. Al present the company is seling 13.000 tioves per moeth. The sales mianager is convinceg that a 10 fieduction is the seling price would resul it a 25W increase in monthly soles of stoyes. Prepere two contibusion lomat incomis satements, ane under present operming condaiens, and one as operotions wocld oppear afler the proposed changes. por montr?? Complete this question by entering yoar anwwers in the tabe below. Outback Outhitters sells recreational equipment. One of the company's products, a small camp stove, selis for $120 per unit. Variable expenses are $84 per stove, and fixed expenses associated with the stove total $151,200 per month, Required: 1. What is the break-even point in unit soles and in dollar soles? 2. If the variable expenses per stove increase as a percentoge 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 13,000 stoves per month. The sales manager is convincegd that a 10% reduction in the seiling 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 dota in Required 3. How many stoves would have to be sold at the new selling price to attain a target profit of $78,000. per month? Complete this question by entering your answers in the tabs below. Refer to the data in Riequired 3. How many stoves would have to be soid at the new selling price to attain a target pront of $78,000 per month? (Round up your final answer to the nearest unit.)

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