Check my w 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: 26 13 $ 13 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 $ 5.900 5.900 5,900 21,300 $39.000 Required: 1. What is the break-even point in unit sales and dollar sales? (Do not round intermediate calculations.) Break-even point in unit sales Break-even point in dollar sales 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 $ 5,900 5,900 5,900 21,300 $ 39,000 3. Angie has decided that she must earn a profit of $19,500 the first year to justify her time and effort. How many pairs of sandals must be sold to attain this target profit? Unit sales to attain target profit - pairs 4. Angie now has two salespersons working in the store-one full time and one part time. It will cost her an additional $9,000 per year to convert the part-time position to a full-time position. Angie believes that the change would increase annual sales by $26,000. Should she convert the position? Use the incremental approach. Multiple Choice o o 5. Refer to the original data. During the first year, the store sold only 4,000 pairs of sandals and reported the following operating results: Sales (4,000 pairs) Variable expenses Contribution margin Fixed expenses Net operating income $ 104,000 52,000 52,000 39,000 $ 13,000 a. What is the store's degree of operating leverage? b. Angle is confident that with a more intense sales effort and with a more creative advertising program she can increase sales by 50% next year. Using the degree of operating leverage, what would be the expected percentage increase in net operating income if Angie is able to increase sales by 50%? a Degree of operating leverage b. Expected percentage increase in net operating income