Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Angie Silva has recently opened The Sandal Shop in Brisbane, Australia, a store that specializes in fashionable sandals. Angie has just received a degree in
Angie Silva has recently opened The Sandal Shop in Brisbane, Australia, a store that specializes in fashionable sandals. Angie has just received a degree in business and she is anxious to apply the principles she has learned to her business. In time, she hopes to open a chain of sandal shops. As a first step, she has prepared the following analysis for her new store Sales price per pair of sandals 3.00 Variable expense per pair of sandals 0.90 2.10 Contribution margin per pair of sandals Fixed expense per year: 12,000 Building rental 6,000 Equipment depreciation Selling 62,200 29,000 Administrative Total fixed expense $109,200 Required 1. How many pairs of sandals must be sold each year to break even? What does this represent in total dollar sales? Break-even point in unit sales pairs Break even point in dollar sales
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