Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

50/7ab-resent projector = 1 2. Blizzard-Wear Glove Company operates a chain of retail kiosks (smal retail booths) located at the base of every major sh.

image text in transcribed

50/7ab-resent projector = 1 2. Blizzard-Wear Glove Company operates a chain of retail kiosks (smal retail booths) located at the base of every major sh. The kiosks sell ten different styles of ski and mountain biking gloves with identical unit costs and selling prices. A unit is defined as a pair of gloves. Each kiosk has a manager who is paid a fried salary. Individual salespeople are paid a combination of fixed salary and a sales commission. Blizzard-Wear is trying to determine the desirability of opening another kiosk at Silver Star Mountain in the Okanagan Valley. The new kiosk is expected to have the following revenue and cost relationships $36.00 Behaviour V 23.40 V 1.80 V Selling price, per pair of gloves Cost per pair of gloves Sales commissions per pair of gloves Kiosk rent Salaries Advertising Other fixed costs 37,500 F 145.000 F 23.000 10,500 Required (10 marks): (Consider each question independently and use two decimal places.) a. What is the annual breakeven point in (a) units sold and (b) revenues? (2 marks) b. If the corporate tax rate were 20%, how much additional revenue would have to be earned in order to earn $10,000 after taxes? 2 marks

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auto Body And Repair Industry IRS Audit Techniques Guide

Authors: Internal Revenue Service

1st Edition

1304131661, 978-1304131669

More Books

Students also viewed these Accounting questions