XYZ Corp selis 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 $158,400 per month. Required: 1. What is the break-even point in unit sales and in dollar sales? 2 If the variable expenses per stove increase as o 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 11,000 stoves per month. The sales manager is corvinced 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 $75,000 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 break-even point? (Assume that the fixed expenses remain unchanged.) XYZ Corp selis recreational equipment. One of the company's products, a small camp stove, sells for $120 per unit Variable expenses ore $84 per stove, and fixcd expenses associated with the stove total $158,400 per month Required: 1 What is the break-even point in unit sales and in dollar sales? 2. If the vanable 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 11,000 stoves per month. The sales maneger 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 hove to be sold ot the new selling price to attain a target profit of $75,000 per month? Complete this question by entering your answers in the fabs below. What is the break-even point in unit sales and in dollar sales? XYZ Corp sells recreational equipment One of the company's products, a small camp stove, sells for $120 per unit Variable expenses are $84 per stove, and fored expenses assoclated with the stove total $158,400 per month. Required: 1. What is the break-even 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 11,000 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 afer 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 $75,000 per month? Complete this question by entering your answers in the tabs below. At present, the company is selling 11,000 stoves per month. The sales manager is convinced that a 1006 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. XYZ Corp selis recreational equipment One of the company's products, a small comp stove, sells for $120 per unit Variable expenses are $84 per stove, and fixed expenses associated with the stove total $158,400 per month. Required: 1. What is the break-even point in unit sales and in dollar sales? 2 if the vanable 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 11,000 stoves per month. The sales manager is corvinced 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 $75,000 oer 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 seling price to attain a target profit of $75,000 per month? (Round op your final answer to the nearest unit.)
