Outback Outfitters sells recreational equipment. One of the company\'s products,

Question

Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $140 per unit. Variable expenses are $98 per stove, and fixed expenses associated with the stove total $197,400 per month. Requirement 1: Compute the break-even point in number of stoves and in total sales dollars. (Omit the "$" sign in your response.)   Number of stoves   Total sales $ Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $140 per unit. Variable expenses are $98 per stove, and fixed expenses associated with the stove total $197,400 per month.

Explanation / Answer

140-98= $42 margin per unit. So BE (in units) is 197,400/42= 4700 units or 4700 *140= $658,000 in dollars.

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