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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
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 soldStep by Step Solution
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