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 companys products, a small camp stove, sells...

70.2K

Verified Solution

Question

Accounting

Outback Outfitters sells recreational equipment. One of the companys products, a small camp stove, sells for $130 per unit. Variable expenses are $91 per stove, and fixed expenses associated with the stove total $195,000 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 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. 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 $73,000 per month?

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

Chemistry
1.2K views

Identify the following as Lewis acids or bases. For a polyatomic molecule, you should be concerned...

Advance Math
1.2K views

1.) Build the parametric equations of a circle centered at the point (2,-3) with a radius...

General Management
1.2K views

Case 6-1  Chobani Chobani LLC, is a producer and marketer of Greek yogurt. The company was founded in...

Biology
1.2K views

Match the Monomers Types Main components of the cell membrane A glycerol and two fatty...

Physics
1.2K views

13 Very small pollen grains are suspended in water A bright light shines from the...

Geometry
1.2K views

11 Find the equation of the circle whose center is 2 1 and radius 5...

Basic Math
1.2K views

8 Instead of regular air scuba divers on deep dives sometimes breathe hell mixture of...

Basic Math
1.2K views

Write the algebraic expressions described by the following English phrases. Use the variable name "x"...

Calculus
1.2K views

the fractal dimension of t rging any portion of the c dimension is

Algebra
1.2K views

What is the exact solution to the equation 2 2 5 O O 3 In...

Accounting
1.2K views

Alyeska Services Company, a division of a major oil company, provides various services to the...

Accounting
1.2K views

tina and tom talley purchased a home in 2001 for $450,000. over the years they...