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Problem 5-26 (Algo) CVP Applications; Break-Even Analysis; Graphing [LO5-1, LO5-2, LO5-4, LO5-5] [The following information applies to the questions displayed below.] The Fashion Shoe
Problem 5-26 (Algo) CVP Applications; Break-Even Analysis; Graphing [LO5-1, LO5-2, LO5-4, LO5-5] [The following information applies to the questions displayed below.] The Fashion Shoe Company operates a chain of women's shoe shops that carry many styles of shoes that are all sold at the same price. 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: Selling price Variable expenses: Invoice cost Sales commission Total variable expenses Fixed expenses: Advertising Rent Salaries Total fixed expenses Per Pair of Shoes $ 25.00 $ 11.50 3.50 $ 15.00 Annual $ 44,000 34,000 170,000 $ 248,000 Problem 5-26 (Algo) Part 1 Required: 1. What is Shop 48's annual break-even point in unit sales and dollar sales? (Do not round intermediate calculations.) Break-even point in unit sales Break-even point in dollar sales pairs
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