Outfitters sells recreational equipment. one of the company’s products, a small camp stove, sells for $90 per unit. variable expenses are $63 per stove, and fixed expenses associated with the stove total $113,400 per month. 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.
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Outfitters sells recreational equipment. one of the company’s products, a small camp stove, sells fo...
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