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

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Accounting

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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 $183,300 per month. Required 1. Compute the company's break-even point in unit sales and in dollar sales. Break-Even Point Number of stoves 4,700 Total sales dollars 611,000 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.) O Higher break-even point Lower break-even point 3. At present, the company is selling 12,000 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

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