Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
n Required information Problem 5-30 (Static) Graphing; Incremental Analysis; Operating Leverage (LO5-2, L05-4, LO5-5, LO5-6, LO5-8] [The following information applies to the questions displayed below)
n Required information Problem 5-30 (Static) Graphing; Incremental Analysis; Operating Leverage (LO5-2, L05-4, LO5-5, LO5-6, LO5-8] [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: Sales price per pair of sandals $ 40 Variable expenses per pair of sandals 16 Contribution margin per pair of sandals $ 24 Fixed expenses per year: Building rental $ 15,000 Equipment depreciation 7,600 Selling 20,000 Administrative 18,000 Total fixed expenses $ 60,000 Problem 5-30 (Static) Part 2 2. Prepare a CVP graph or a profit graph for the store from zero pairs up to 4,000 pairs of sandals sold each year. Indicate the break- even point on your graph. (Use the line tool to draw a single line (Total Sales, Fixed Expense, Total Expense, Profit). This line should only contain the two endpoints. Use the point tool (Break Even Point) to plot the Break Even Point. For your graph to grade correctly, you must enter the exact x and y coordinates for each endpoint. Once all points have been plotted, click on the line (not individual points) and a tool icon will pop up. You can use this to enter exact co-ordinates for your points as needed. To remove a line/point from the graph, click on the line/point and select delete option) UNIV LOTILI tre LwU FILDUITS. Required information ***g- Cost-volume-profit graph Fixed Expense $200 Total Sales $180 $160- Total Expense $140 $120- Total Sales (000s) $100 Broak Even Point $80 560 $40 - $20 $0 500 1000 1500 2000 2500 3000 3500 4000 Number of Pairs of Sandals Sold G reset Part 2 of 5 Profit Graph Profit 4 points Break Even Point eBook Profit $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 -5,000 $-10,000 $-15.000 S-20,000 5-25,000 $-30,000 $-35,000 $ 40,000 3-45,000 5-50,000 $-55,000 $ 60,000 Print References OLL 500 1000 1500 2000 2500 3000 3500 4000 Sales Volume in Units 5 reset
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started