Kindly solve all questions from this topic

* The Zeller's shoe company operates a chain of shoe stores. The store sells ten 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 fixed salary. Individual salespeople receive a fixed salary and a sales commission. Walk Rite is trying to determine the desirability of opening another store, which is expected to have the following revenue and cost relationships Unit variable costs per unit: Annual Fixed Costs: Selling Price $ 60.00 Rent $120,000 Salaries 400,000 Cost of shoes S 39,00 Advertising 160,000 Sales Commission 3.00 Other fixed costs 40.000 Total variable costs $42.00 Total fixed costs S720.000 (consider each question independently) a) What is the annual break-even point in units? (40,000 units) b) If 70,000 units are sold, what will be the store's operating income? ($540,00) If sales commissions were discontinued for individual sales people in favor of an $162,000 increase in fixed salaries, what would be the annual breakeven point in units sold. ($ 42,000) Spenser Company expects to sell 60,000 units of Product B next year. Variable production costs are S4 per unit , and variable selling costs are 10% of the selling price. Fixed costs are $115,000 per year, and the company desires an after tax profit of $30,000 next year. The Company tax rate is 40%. Based on this information, the unit selling price next year should be. 01 -0.40 01 = 30,000 01 = 50,000 60,000 X-(4 x 60,000) - 1.10X60,000) X- 115.000 = 50,000 54.000 X= 50.000 + 240.000 + 115,00 X-S 7.5