4 3Outback Outfitters sells a small camp stove for $150 per unit. Variable expenses are $105 per unit, and fixed expenses total$193,500 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 the fixed expenses remain unchanged.)3. At present, the company is selling 17,000 stoves per month. The sales manager is convinced a 10% reduction in theselling price would result in a 25% increase in unit sales. Prepare two contribution format income statements, one underpresent 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 profitof $77,000 per month?Complete this question by entering your answers in the tabs below.Required 1Required 2 Required 3Required 4What is the break-even point in unit sales and in dollar sales?Break-even point in unit salesBreak-even point in dollar salesStoves< Required 1Required 2 >

Variable costs are costs which changes with change in activity level. Fixed costs do not change with…

Answered: Outback Outfitters sells a small camp…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7EB: Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are...

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D) is what i need assistance with
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[The following information applies to the questions displayed below.] Charlevoix Cases makes mobile phone cases. The company has collected the following price and cost characteristics: Sales price Variable costs Fixed costs $ 12.00 per case 5.50 per case 391,950 per year Assume that the company plans to sell 75,300 units annually. Consider requirements (b), (c), and (d) independently of each other. Required: a. What will be the operating profit? b. What is the impact on operating profit if the sales price decreases by 20 percent? Increases by 10 percent? Note: Do not round intermediate calculations. c. What is the impact on operating profit if variable costs per unit decrease by 20 percent? Increase by 10 percent? Note: Do not round intermediate calculations. d. Suppose that fixed costs for the year are 20 percent lower than projected and variable costs per unit are 20 percent higher tha projected. What impact will these cost changes have on operating profit for the year? Will profit…

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