Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please solve asap Footsteps Ltd manufactures shoes for children between the ages 5-10 years. At its exclusive sales outlet, it sells twenty different styles of

image text in transcribed

please solve asap

Footsteps Ltd manufactures shoes for children between the ages 5-10 years. At its exclusive sales outlet, it sells twenty different styles of shoes with identical unit costs and selling prices. Each sale outlet has a manager, who is paid a fixed salary, Individual salespeople receive a fixed salary and a sales commission Footsteps is trying to determine whether to open another Sales outlet, which is expected to have the following revenue and cost relationships: Selling Price 250 Variable expenses: Cost of sales 150 Sales commission 10 Total variable cost 160 Annual fixed cost: Rent 1,00000 salaries 2,00000 Advertising 1,20000 Other fixed cost 30,000 Total Fixed cost 4,50000 Required - Calculate the each question independently a. What is annual BEP in units sold and revenues? b. If 40000 units are sold, what will be sales outlet's operating income? c. If Sales commission are discontinued for individual salespeople in favour of Rs 150000 increase in fixed salaries what would be the breakeven point in i)units sold and ii) revenue d. Refer to original data if sales managers were paid 0.30 per unit commission on each unit sold in excess to BEP, What would be sales outlet's operating income if 50000 units are sold

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ronald W Hilton

7th Edition

0073022853, 978-0073022857

Students also viewed these Accounting questions