2- Angie Silva opened the Sandal Shop, a store that specializes in fashionable sandals. In time she hopes to open a chain of sandal shops. As a first step, she has prepared the following analysis for her new store: (8 Marks) Sales price pair of sandals $60 Variable Expenses per pair of sandals 33 Fixed Expenses per year $24,000 Building Rental Expense Equipment Depreciation Expenso 1,400 Salaries Expanse 35,000 Administrative Experves 2000 Total Fixed Costs 62,400 a. How many pairs of tondoh must be sold each year to break even? (1 merk) b. Currently Angie has two sales persons working in the store; one full-time and one part-time, it would cost her and additional $9,000 per year to convert the part-time position to a full time position Angie believes that the change would bring in an additional $26,000 in sales each year Should she convert the position? - Be specific & support your answer with a calculation. (smarks) c. Angie wants to also start selling boots She believes that for every 4 pairs of sondals, she can soll pair of boots. The selling price per pair of boots would be $120 with a respective variable cost of $70 Fixed costs would remain the same How many pair of boots and pairs of sandals would Angie need to sell in order to break even? (4 marks) atv P 4 DU 30 888 FA ES # & $ ? 7 8 6 9 C 2 3 4 0 W E Y R U T Q. How many pairs of sandals must be sold each year to break even? (1 mark) b. Currently Angie has two sales persons working in the store, one full-time and one part-time. It would cost her and additional $9,000 per year to convert the part-time position to a full time position Angie believes that the change would bring in an additional $26,000 in sales each year. Should she convert the position? - Be specific & support your answer with a calculation (3 marks) C. Angie wants to also start selling boots. She believes that for every 4 pairs of sandals, she can sell 1 pair of boots. The selling price per pair of boots would be $120 with a respective variable cost of $70. Fixed costs would remain the same. How many pairs of boots and pairs of sandals would Angle need to sell in order to break even? (4 marks) Break even pairs of boots Break even pairs of sondals Paragraph BT EE UsXy X Ea Font family IN FROM a. How many pairs of sandals must be sold each year to break even? (1 mark) Font size 2311 units b. Currently Angie has two sales persons working in the store; one full-time and one part-time. It would cost her and additional $9,000 per year to convert the part-time position to a full time position. Angie believes that the change would bring in an additional $26,000 in sales each year
