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Question 1 Shades store operates in a booth at Wollongong City Mall, selling sunglasses for $60 each. Shades currently pays to the $2 000 a
Question 1 Shades store operates in a booth at Wollongong City Mall, selling sunglasses for $60 each. Shades currently pays to the $2 000 a month to rent the booth and pays two part-time employees to each work 160 hours a month at $20 per hour. Shades shares a manager to look after the kiosk with a neighbouring kiosk and paid 50% of the annual salary plus entitlement. The manager is paid $60,000 annual salary plus entitlement 20% of the salary. The cost of the sunglasses from the wholesaler is $20 each. Required (show all the workings) a) How many bags does Shades need to sell each month to break even? (15 marks) b) If Shades wants to earn an operating income of $5 400 per month, how (15 marks) many bags does Shades need to sell. c) If Shades hourly employees agreed to a 15% sales-commission-only pay (20 marks) structure instead of their hourly pay, how many bags would Shades need to sell to earn an operating income of $5 400
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