A. Calculate the annual break-even point in dollar sales and in unit sales for Shop 48.

B. If 12,000 pairs of shoes are sold in a year, what would be Shop 48s net operating income or loss?

C. The company is considering paying the store manager of Shop 48 an incentive commission of 75 cents per pair of shoes (in addition to the salespersons commission). If this change is made, what will be the new break-even point in dollar sales and in unit sales?

The Fashion Shoe Company operates a chain of women's shoe shops around the country. The shops carry many styles of shoes that are all sold at the same price. Sales personnel in the shops are paid a substantial commission on each pair of shoes sold (in addition to a small basic salary) in order to encourage them to be aggressive in their sales efforts. The following worksheet contains cost and revenue data for Shop 48 and is typical of the company's many outlets