answer 4b & Question 5

The Famous Shoe Company operates a chain of shoe stores that sel 10 different styles of inexpensive men's shoes with identical unit costs and selling prices Aunit is defined as a pai of shoes Each store has a store manager who is paid a fixed salary Individual salespeople receive a fixed salary and a sales commission Famous is considering opening another store that is expected to have the revenue and cost relationships shown here (Click the icon to ww the revenue and cost information Road the guitamente Requirement 4b. Refer to the original data it in addition to his fixed salary the store manager is paid a commission of Sa 20 per un sold, what would be the annual breakeven ont in revenues? (Do not found any of your calculations Using the same information as requirement a calculate the breakeven point in revenues The annual breakiven point in revenues would be 062080 Requirements Consider each question independently 1. What is the annual breakeven point in (a) units sold and (b) revenues? 2. If 32,000 units are sold, what will be the store's operating income (loss)? 3. If sales commissions are discontinued and fixed salaries are raised by a total of $17,700, what would be the annual breakeven point in (a) units sold and (b) revenues? 4. Refer to the original data. If, in addition to his fixed salary, the store manager is paid a commission of $4.20 per unit sold, what would be the annual breakeven point in (a) units sold and (b) revenues? 5. Refer to the original data. If, in addition to his fixed salary, the store manager is paid a commission of $4.20 per unit in excess of the breakeven point, what would be the store's operating income if 55,000 units were sold? Data Table Annual Fixed Costs Rent $ Unit Variable Data (per pair of shoes) $ 60.00 Selling price Cost of shoes $ 33.00 Sales commission 6.00 $ 39.00 Variable cost per unit 25,000 171,500 Salaries Advertising 32,000 13,000 Other fixed costs $ 241,500 Total fixed costs