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Angie Silva has recently opened The Sandal Shop in Brisbane, Australia, a store that specializes in fashionable sandals. In time, she hopes to open
Angie Silva has recently opened The Sandal Shop in Brisbane, Australia, a store that specializes in fashionable sandals. In time, she hopes to open a chain of sandal shops. As a first step, she has gathered the following data for her new store: Sales price per pair of sandals Variable expenses per pair of sandals Contribution margin per pair of sandals Fixed expenses per year: Building rental Equipment depreciation Selling Administrative Total fixed expenses $ 40 16 $ 24 $ 15,000 7,000 20,000 18,000 $ 60,000 4. Angie now has two salespersons working in the store--one full time and one part time. It will cost her an additional $8,000 per year to convert the part-time position to a full-time position. Angle believes that the change would increase annual sales by $25,000. Should she convert the position? Us the incremental approach. Multiple Choice Yes No
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