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Outback Outfitters selis recreational equipment. One of the company's products, a small camp stove, sells for $120 per unit. Variable expenses are $84 per stove, and fixed expenses associated with the stove total $144,000 per month Required: 1. What is the break-even point in unit sales and in doltar sales? 2. If the varlable expenses per stove increase as o percentage of the seling 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 managet 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 undet 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 seling price to attain a torget profit of $74,000 per month? Complete this question by entering your answers in the tabs below. At present, the company is selling 13,000 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. 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 o target profit of $74,00 per 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 selling price to attain a target profit of $74,000 per month? (Round up your final answer to the nearest unit.)

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