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Problem 5-30 (Algo) Graphing: Incremental Analysis; Operating Leverage [LO5-2, LO5-4, LO5-5, LO5-6, LO5-8] [The following information applies to the questions displayed below] Angie Silva
Problem 5-30 (Algo) Graphing: Incremental Analysis; Operating Leverage [LO5-2, LO5-4, LO5-5, LO5-6, LO5-8] [The following information applies to the questions displayed below] Angie Silva has recently opened The Sandal Shop in Brisbane, Australia, a store that specializes in fashionable sandals. In time, she hopes to open a chain of sandal shops. As a first step, she has gathered the following data for her new store Sales price per pair of sandals Variable expenses per pair of sandals Contribution margin per pair of sandals Fixed expenses per year: Building rental Equipment depreciation. Selling Administrative Total fixed expenses $26 13 $ 13 $ 5,900 5,900 5,900 21,300 $ 39,000 Problem 5-30 (Algo) Part 3 3. Angie has decided that she must earn a profit of $19.500 the first year to justify her time and effort. How many pairs of sandals must be sold to attain this target profit? Unit sales to attain target profit pairs
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