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Required information 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
Required information 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 Per Pair of Shoes $ 30.00 $ 9.50 5.50 $ 15.00 Fixed expenses: Advertising Rent Salaries Total fixed expenses Annual $ 36,000 23,000 130,000 $ 189,000 Problem 5-26 (Algo) Part 6 6. Refer to the original data. The company is considering eliminating sales commissions entirely in its shops and increasing fixed salaries by $36,500 annually. If this change is made, what will be Shop 48's new break-even point in unit sales and dollar sales? (Do not round intermediate calculations.) New break-even point in unit sales New break-even point in dollar sales pairs
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