Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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. image text in transcribed

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. e

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Theory And Practice

Authors: Arun Kumar & Rachana Sharma

1st Edition

8171567207, 978-8171567201

More Books

Students also viewed these Accounting questions

Question

Learn how to conduct experiments with more than two groups

Answered: 1 week ago