for $50 per unit. Variable expenses are $32 per stove, and fixed expenses associated with the stove total $108,000 per month Outback Outitters sells recreational equipment One of the company's products, a small camp stove, sells Required: 1. Compute the company's break-even point in unit sales and in dollar sales Break-Even Point Number of stoves 6,000 Total sales dollars 300,000 2. If the variable expenses per stove increase as a percentage of the seling price, will it result in a higher or a lower break-even point? (Assume that the fixed expenses remain unchanged) Higher break-even point Lower break-even point 3. At present, the company is 8,000 stoves per month The sales manager is convinced that a 10% result in a 25% increase in monthly sales of stoves. Prepare to reduction in the selling price contribution format income statements, one under present operating conditions, and one as operations would appear after the proposed changes Outback Outfitters Present Proposed 8,000 Stoves toves Total Per Unit Total Per Unit 4 Refer to the data in (3) above How many stoves would have to be sold at the new selling price to yield a minimum net operating income of $35,000 per month