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CH 5 PRECLASS FOR 10-12-21 A Savod Help Save & Exit Submit Check my work mode : This shows what is correct or incorrect for

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CH 5 PRECLASS FOR 10-12-21 A Savod Help Save & Exit Submit Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion. Return to question 3 Required information (The following information applies to the questions displayed below.) The Fashion Shoe Company operates a chain of women's shoe shops that carry many styles of shoes that are all sold at the same price. Sales personnel in the shops are paid a sales commission on each pair of shoes sold plus a small base salary Part 1 of 2 10 points The following data pertains to Shop 48 and is typical of the company's many outlets: Per Pair of Shoes $ 20.00 Selling price Variable expenses: Invoice cost Sales comission Total variable expenses $ 6.50 5.50 $ 12.00 Annual Fixed expenses Advertising Rent Salaries Total fixed expenses $ 42,000 32,000 160,000 $ 234,000 5. Refer to the original data. As an alternative to (4) above, the company is considering paying the Shop 48 store manager 55 cents commission on each pair of shoes sold in excess of the break-even point. If this change is made, what will be Shop 48's net operating income (loss) if 31,350 pairs of shoes are sold? (Do not round intermediate calculations.)

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