Part $5$ of $5$

Required information

$[$The following information applies to the questions displayed below.$]$

The Fashion Shoe Company operates a chain of women's shoe shops carrying many styles of shoes all sold for $\backslash (\backslash$$ $30\backslash )$ per pair. 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:

$1$

points

$01$:$09$:$01$

$\backslash$begin$\{$tabular$\}\{|$c$|$c$|\}$

$\backslash$hline & Per Pair of Shoes $\backslash \backslash$

$\backslash$hline Selling price & $\backslash$$ $30\mathrm{.}00\backslash \backslash$

$\backslash$hline $\backslash$multicolumn$\{2\}\{|$l$|\}\{$Variable expenses:$\}\backslash \backslash$

$\backslash$hline Invoice cost & $\backslash$$ $9\mathrm{.}50\backslash \backslash$

$\backslash$hline Sales commission & $5\mathrm{.}50\backslash \backslash$

$\backslash$hline Total variable expenses & $\backslash$$ $15\mathrm{.}00\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

Annual

Fixed expenses:

$\backslash$begin$\{$tabular$\}\{$lr$\}$

Advertising & $\backslash (\backslash$$ $36,000\backslash )\backslash \backslash$

Rent & $23,000\backslash \backslash$

Salaries & $130,000\backslash \backslash$

$\backslash$hline Total fixed expenses & $\backslash (\backslash$$ $189,000\backslash )\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

Required:

$6.$ Refer to the original data. The company is considering eliminating sales commissions entirely in its shops and increasing fixed salaries by $\backslash (\backslash$$ $36,500\backslash )$ annually. If this change is made, what will be Shop $48\text{'}$s new break$-$even point in unit sales and dollar sales?

Note: Do not round intermediate calculations.

$\backslash$begin$\{$tabular$\}\{|$l$|$l$|$l$|\}$

$\backslash$hline New break$-$even point in unit sales & & pairs $\backslash \backslash$

$\backslash$hline New break$-$even point in dollar sales & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$