I tried but I cant finish it Outback Outfitters sells recrea

I tried but I can\'t finish it.

Outback Outfitters sells recreational equipment. One of the company\'s products, a small camp stove, sells for $110 per unit. Variable expenses are $77 per stove, and fixed expenses associated with the stove total $135,300 per month.

Solution

4)

Target sales in stoves = [Fixed cost+ Target income ]/contribtuion per stoves

          =[135300+72000]/22

          = 207300/22

        = 9423 stoves

Contribution margin Income statement
	Present	Proposed
	10000	12500
	Total	per unit	Total	per unit
Sales	1,100,000	110	1,237,500   (12500*99)	99
variable expense	(770,000)	(77)	(962,500)	(77)
contribution margin	330000	33	275,000	22
Fixed cost	(135,300)		(135,300)
Net Operating Income	194,700		139,700