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I need help with # 6 The Fashion Shoe Company operates a chain of women's shoe shops that carry many styles of shoes that are
I need help with # 6
The Fashion Shoe Company operates a chain of women's shoe shops 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 Shop 48 and is typical of the company's many outlets: Per Pair of Shoes $ 20.00 Selling price Variable expenses: Invoice cost Sales commission Total variable expenses 4.50 5.50 10.00 $ Annual Fixed expenses: Advertising Rent Salaries Total fixed expenses $ 43,000 30,000 150,000 $ 223,000 6. The company is considering eliminating sales commissions entirely in its shops and increasing fixed salaries by $31,200 annually. If this change is made, what will be Shop 48's new break-even point in unit sales and dollar sales? (Do not round intermediate calculations.) pairs New break-even point in unit sales New break-even point in dollar salesStep by Step Solution
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