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  3. 4 outback outfitters sells recreational equipment.

4 Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove,...

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4 Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $50 per unit: Variable expenses are $32 per stove, and fixed expenses associated with the stove total $108,000 per monith. 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 pointe Why? (Assume that the fixed expenses remain unchanged,) 3. At present, the company is selting 8,000 stoves per month. The sales manager is convinced that a I08 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 oppear after the proposed changes. Show both total and per unit data on your statements. 4. Refer to the data in (3) above. How many stoves would have to be sold at the new selling price to attain a target proflt of $35 ano per month

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