Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

help please :) Required information The following information applies to the questions displayed below.) Angle Silva has recently opened The Sandal Shop in Brisbane, Australia,

help please :)
image text in transcribed
image text in transcribed
image text in transcribed
Required information The following information applies to the questions displayed below.) Angle 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: 5 26 13 $13 Salen price per pair of sandals Variable expenses per pair of sandals Contribution margin per pair of sandals Fixed expenses per yeart 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 The following information applies to the questions displayed below) 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 $26 Variable expenses per pair of sandalo 13 Contribution margin per pair of sandals $ 13 Fixed expensen per yeart Building rental $ 5,900 Equipment depreciation 5.900 Selling 5,900 Administrative 21,300 Total fixed expenses $ 39,000 4. Angle 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 Yes NO Required information The following information applies to the questions displayed below.) 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 yeart Building rental Equipment depreciation Selling Administrative Total fixed expenses $ 5,900 5,900 5,900 21,300 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 14,000 pairs) Variable expenses Contribution margin Pixed 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. Angie is confident that with a more intense sales effort and with a more creative advertising program she can increase unit sales by 50% next year. Using the degree of operating leverage, what would be the expected percentage increase in net operating Income If Angle is able to increase unit sales by 50%? a. Degree of operating leverage b. Expected percentage increase in net operating inconto

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_2

Step: 3

blur-text-image_3

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

The Practitioners Guide To Edp Auditing

Authors: Jack Mullen

1st Edition

0136912621, 978-0136912620

More Books

Students also viewed these Accounting questions