70.2K

Verified Solution

Link Copied!

Please complete all four requirements.

Outback Outfitters sells a small camp stove for $140 per unit. Varlable expenses are $98 per unit, and fixed expenses total $197,400 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 the fixed expenses remain unchanged.) 3. At present, the company is selling 14,000 stoves per month. The sales manager is convinced a 10% reduction in the selling price would result in a 25% increase in unit sales. 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 doltar sales? Outback Outfitters sells a small camp stove for $140 per unit. Variable expenses are $98 per unit, and fixed expenses total $197,400 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 the fixed expenses remain unchanged.) 3. At present, the company is selling 14,000 stoves per month. The sales manager is convinced a 10% reduction in the selling price would result in a 25% increase in unit sales. 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. 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 the fixed expenses remain unchanged.) Outback Outfitters selis a small camp stove for $140 per unit. Variable expenses are $98 per unit, and fixed expenses totai $197,400 per month. Required: 1. What is the break-even point in unit sales and in dollar sales? 2. If the varlable expenses per stove increase as a percentage of the selling price, will it result in a higher or a lower break-even point? (Assume the fixed expenses remain unchanged) 3. At present, the company is selling 14,000 stoves per month. The sales manager is convinced a 10% reduction in the selling price would result in a 25% increase in unit sales. 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. At present, the company is seling 14,000 stoves per month. The sales manager is convinced a 10% reduction in the seliing price would result in a 25% increase in unit sales. Prepare two contribution format income statements, one under present operating conditions, and one as operations would appear after the proposed changes. Outback Outfitters sells a small camp stove for $140 per unit Variable expenses are $98 per und, and fixed expenses total $197,400 per month. Required: 1. What is the break-even point in unit sales and in doliar soles? 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 the fixed expenses remain unchanged) 3. At present, the company is selling 14.000 stoves per month. The sales manager is convinced a 10% reduction in the selling price would result in a 25% increase in unit sales. Prepare two contribution format income statements, one under present operating conditions, and one as operations would oppear 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 or $74,000 permonth? 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 proft of $74,000 per manth? Notel Hound up your final anwwer to the nesrest unit

Answer & Explanation Solved by verified expert

See Answer