Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. outback outfitters sells recreational equipment. o

Outback Outfitters sells recreational equipment. One of the company's products, a...

60.1K

Verified Solution

Question

Accounting

image
Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $130 per unit. Variable expenses are $91 per stove, and fixed expenses associated with the stove total $191,100 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 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 14,000 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 $74,000 per month? Complete this question by entering your answers in the tabs below. What is the break-even point in unit sales and in dollar sales

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year* Recovery year 3 years 5 years 7 years 10 years 1 33% 20% 14% 10% 2 45% 32% 25% 18% 3 15% 19% 18% 14% 4 7% 12% 12% 12% 5 12% 9% 9% 6 5% 9% 8% 7 9% 7% 8 4% 6% 9 6% 10 6% 11 4% Totals 100% 100% 100% 100% A firm is considering...

Biology
1.2K views

6 Which of the following criteria are required for natural selection to occur SELECT ALL...

Biology
1.2K views

The arrow in the diagram is pointing to the O a Heart Ob Seminal vesicle...

Basic Math
1.2K views

Write the first 3 terms of each geometric sequence a in 4n 1 b tn...

Basic Math
1.2K views

Portfolio A B C D Expected return 18 5 11 8 Standard deviation 12 7...

Accounting
1.2K views

B2B Company is considering the purchase of equipment that would allow...

Accounting
1.2K views

10 Question 28 The following information is...

Accounting
1.2K views

please answer 1-5 1. MSM Inc. is showing increasing sales each month....

Accounting
1.2K views

La nota a pie de pgina de eBay sobre la compensacin de acciones de los...

Accounting
1.2K views

Walton Books buys books and magazines directly from publishers and distributes them to grocery stores....

Accounting
1.2K views

Under the indirect method, a decrease in Land would a. added in the operating section...

Finance
1.2K views

True or false: The Crash of 2008 was limited to the United States. True...