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DO NOT DO PART A!, ONLY PARTS BCDE WHICH IS 4 PARTS TOTAL Please show all calculations. 4. CVP analysis; break even, graphing (4pts): Waltzing
DO NOT DO PART A!, ONLY PARTS BCDE WHICH IS 4 PARTS TOTAL
Please show all calculations.
4. CVP analysis; break even, graphing (4pts): Waltzing Along, Inc. operates a chain of shoe stores 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 The following data pertains to Waltzing Along, Inc. and is typical of the company's many outlets Per Pair of Shoes 20.00 Selling price Variable expenses: Invoice cost Sales commission 6.00 4.00 $10.00 Total variable expenses Annual Fixed expenses: Advertising Rent Salaries $33,000 27,000 135,000 $ 195,000 Total fixed expenses What is Waltzing Along's annual break-even point in both unit sales and dollar sales? Prepare a CVP graph showing cost and revenue data for Waltzing Along from zero shoes up to 25,000 pairs of shoes sold each year. Clearly indicate the break-even point on your graph If 15,500 pairs of shoes are sold in a year, what would be Waltzing Along's net operating income (loss)? The company is considering paying the Waltzing Along store manager an incentive commission of 75 cents per pair of shoes (in addition to the salesperson's commission). If this change is made, what will be thee new break-even point in units and in dollar sales? For units, round your answer up to the nearest whole unit. For dollar sales, round to the nearest cent (i.e. two decimal places) Refer to the original data. The company is considering eliminating sales commissions entirely in its shops and increasing fixed salaries by $38,600 annually. If this change is made, what will be Waltzing Along's new break-even point in units and in dollar sales? For units, round your answer up to the nearest whole unit. For dollar sales, round to the nearest cent (i.e. two decimal places) a. b. c. d. eStep by Step Solution
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