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Hi. I need requirement 4a. Homework: Homework chapter 3 part 1 Question 4, P3-43 (book/static) Part 6 of 8 HW Score: 79.4%, 3.18 of 4
Hi. I need requirement 4a.
Homework: Homework chapter 3 part 1 Question 4, P3-43 (book/static) Part 6 of 8 HW Score: 79.4%, 3.18 of 4 points Points: 0.86 of 1 Save The HighStep Shoe Company operates a chain of shoe stores that sell 10 different styles of inexpensive men's shoes with identical unit costs and selling prices. A unit is defined as a pair of shoes. Each store has a store manager who is paid a foed salary. Individual salespeople receive a fixed salary and a sales commission. HighSlep is considering opening another store that is expecled to have the revenue and cost relationships shown here. (Click the icon to view the revenue and cost information.) X Read the requirements Data table equirements B B D = Bred Fixed costs 180.000 + Contribution margin per unit + S 20 $ Requirement 16. What is the annual breakeven point in revenues? Determine the formula used to calculate the breakeven revenue, then calculate Breakeven number of units Selling price 9.000 BD 1 Unit Variable Data (per pair of shoes) Annual Fixed Costs 2 Selling price $ 60.00 Rent $ 30,000 3 Cost of shoes $ 37.00 Salaries 100,000 4 Sales commission 3.00 Advertising 40,000 5 Variable cost per unit $ 40.00 Other fixed costs 10,000 6 Total bed oogte $ 180,000 Cansicier each question independently 1. What is the annual breakeven point in (a) units sold and (b) revenues? 2. If 8,000 units are sold, what will be the stone's operating income (loss)? 3. If sales commissions are discontinued and fixed salaries are raised by a tatal of $15,500, what would be the annual breakeven point in (al units sold and (b) revenues? 4. Refer to the original data. If, in addition to his fixed salary, the store manager is paid a commission of $2.00 per unit sold, what would be the annual breakeven point in (a) units sold and (b) revenues? 5. Refer to the original data. If, in addition to his fixed salary, the store manager is paid a commission of $2.00 per unit in excess of the breakeveri powi, what would be the store's operating income if 12.000 units were sold? Requirement 2. If 8,000 units are sold, what wil be the store's operating income Delermine the formula used to calculate the operating income loss) and then ent Print Done Print Done x Contribution margin per unit Quantity of units sold 8,000 1 - ) 20 Requirement 3a. If sales commissions are discontinued and fixed salaries are raised by a total of $15.500, what would be the annual breakeven point in units solo? The annual breakeven point in unils sold would be 8.500 units. Requirement 3b. If sales commissions are discontinued and fixed salaries are raised by a folal of $15,500, what would be the annual breakeven point in revenues? The annual breakeven point in revenues would be $510.000 $ Requirement 4a. Refer to the original data. If, in addition to his fixed salary, the store manager is paid a commission of $2.00 per unit sold, what would be the annual breakeven point in units sold? (Do not round any of your calculations.) . , The annual breakeven point in units sold would be 549152.54. unitsStep by Step Solution
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