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Part 1: Sand in Your Shoes, Inc., (SYSI), makes and sells sandals, in pairs. Last month they made and sold 4700 pairs, for $ 275

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Part 1: Sand in Your Shoes, Inc., (SYSI), makes and sells sandals, in pairs. Last month they made and sold 4700 pairs, for $ 275 each. The cost of leather to make a pair of sandals is $ 37, but the artisans who produce them take three hours of labor to make each pair and are paid $ 28 an hour. The electricity cost per finished pair is $ 4 each, and the company pays a $ 15 sales commission per pair sold. Totals of factory costs are rent of $ 170,000 each month, insurance of $ 46,000 a month, along with machine depreciation of $ 27,000 a month. The production supervisor makes $ 55,000 each month. The sales staff receives salaries of $ 51,000 each month and the salesroom rent is $ 29,000 monthly. The office manager, Mandi, also has her office in the sales room building and receives a salary of $ 72,000 monthly.Compute SYSI's breakeven in pairs and in sales dollars, and the company's margin of safety Compute SYSi's breakeven in pairs and in sales dollars, and the company's margin of safety. Part 2: The production director, Stacy, feels she can increase sales by 10% in either of three ways, two of which are by increasing product quality, and advertising, or quality training. She feels that the product quality increase could be accomplished by using a different type of leather which will cost $ 42 to make each pair of sandals, along with a new advertising budget of $ 16,000 a month. The second option to increase quality would be to add a quality training monthly course for the artisans costing $10,000, which would be done in conjunction with a $2 per hour raise. The third way she feels she can increase sales by 10% is by tripling the sales commission per pair sold. Are any of these three options a good idea? Which is the best? A co worker, Bret, overheard Stacy and suggested a fourth suggestion. A vip model could be made and sold with the characteristics of all three options together, the better leather, the monthly training class and the advertising for the deluxe model along with a pay raise for himself, and a triple sales commission for the sales staff for vips. Stacy estimates that a selling price for the deluxe model would be $40 more than the original model, and that about 15% of the total sales would be for the new vip model. What would be the new breakeven point

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