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a) The Shoe2U Company operates a chain of shoe stores that sell 10 different styles of inexpensive women's shoe with identical unit costs and selling
a) The Shoe2U Company operates a chain of shoe stores that sell 10 different styles of inexpensive women's shoe with identical unit costs and selling prices. A unit is defined as a pair of shoes. Each store has a store manager who is paid a fixed salary. Individual sales person receive a fixed salary and a sales commission. Shoe2U is considering opening another store that is expected to have the revenue and cost relationships as shown in the tables below. Tahlo nda Mil. Unit Variahle Information Par Pair of Shnes Analyse: (i) The annual breakeven point in units sold and revenues. (4 marks) (ii) The new operating income if 7,000 units are sold. (6 marks) (iii) The new annual breakeven point in units sold and revenues if sales commissions are discontinued and fixed salaries are raised by a total of RM12,500. (8 marks)
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