Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A Requirements 1. How many sunglasses does Pretty Glasses need to sell each month to break even? 2. If Pretty Glasses wants to earn an
A Requirements 1. How many sunglasses does Pretty Glasses need to sell each month to break even? 2. If Pretty Glasses wants to earn an operating income of $7,584 per month, how many sunglasses does the store need to sell? 3. If the store's hourly employees agreed to a 25% sales-commission-only pay structure, instead of their hourly pay, how many sunglasses would Pretty Glasses need to sell to earn an operating income of $7,584? 4. Assume Pretty Glasses pays its employees hourly under the original pay structure, but is able to pay the mall 6% of its monthly revenue instead of monthly rent. At what sales levels would Pretty Glasses prefer to pay a fixed amount of monthly rent, and at what sales levels would it prefer to pay 6% of its monthly revenue as rent? Print Done Question Help O Pretty Glasses operates a kiosk at the local mall, selling sunglasses for $32 each. Pretty Glasses currently pays $2,600 a month to rent the space and pays two full-time employees to each work 140 hours a month at $8 per hour. The store shares a manager with a neighboring kiosk and pays 50% of the manager's annual salary of $48,000 and benefits of $14,400. The wholesale cost of the sunglasses to the company is $8 a pair. Read the requirements. Requirement 1. How many sunglasses does Pretty Glasses need to sell each month to break even? Select the formula labels, enter the amounts and calculate the breakeven number of sunglasses per month. Contribution margin per unit / = Breakeven number of units Requirement 2. If Pretty Glasses wants to earn an operating income of $7,584 per month, how many sunglasses does the store need to sell? Select the formula labels, enter the amounts and calculate the number of sunglasses required to be sold to reach a target operating income of $7,584. (Round your answer up to the nearest whole unit.) Quantity of units required to be sold = Requirement 3. If the store's hourly employees agreed to a 25% sales-commission-only pay structure, instead of their hourly pay, how many sunglasses would Pretty Glasses need to sell to earn an operating income of $7,584? Select the formula labels, enter the amounts and calculate the number of sunglasses required to be sold to reach a target operating income of $7,584 if the store's hourly employees agreed to a 25% sales-commission-only pay structure, instead of their hourly pay. (Round intermediary calculations to the nearest cent and your answer up to the nearest whole unit.) Quantity of units required to be sold = Requirement 4. Assume Pretty Glasses pays its employees hourly under the original pay structure, but is able to pay the mall 6% of its monthly revenue instead of monthly rent. At what sales levels would Pretty Glasses prefer to pay a fixed amount of monthly rent, and at what sales levels would it prefer to pay 6% of its monthly revenue as rent? (Round intermediary calculations to the nearest cent and your answer up to the nearest whole unit.) For sales between 0 and sunglasses, Pretty Glasses prefers to pay the 6% commission. For sales than this number, the company prefers to pay the monthly rent of $2,600. Choose from any list or enter any number in the input fields and then continue to the next
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started