Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $150 per u

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Outback Outfitters Sells Recreational Equipment One Of The Company S Products A Small Camp Stove Sells For 150 Per U 1 (30.59 KiB) Viewed 39 times

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Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $150 per unit. Variable expenses are $105 per stove, and fixed expenses associated with the stove total $202,500 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 19,000 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 $75,000 per month? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 What is the break-even point in unit sales and in dollar sales? Break-even point in unit sales Break-even point in dollar sales Required 3>
. Assume that the amounts of the company's total variable expenses and total fixed expenses were reversed. In other words, assume hat the total variable expenses are $8,400 and the total fixed expenses are $21,000. Under this scenario and assuming that total ales remain the same, what is the degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverage < Prev 111 Naut
sem per month? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Redired 3 Required 4 At present, the company is selling 19,000 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. Outback Outfitters Contribution Income Statement Stoves Present Stoves Proposed 19.000 Total Total Per unit Per unit ce to attain a target profit of $75,000
Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 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 $75,000 per month? (Round up your final answer to the nearest unit.) Unit sales needed to attain the target profe (Required 3