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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:

Per Pair of Shoes

Selling price $ $20\mathrm{.}00$

Variable expenses:

Invoice cost $ $6\mathrm{.}50$

Sales commission $5\mathrm{.}50$

Total variable expenses $ $12\mathrm{.}00$

Annual

Fixed expenses:

Advertising $ $42,000$

Rent $32,000$

Salaries $160,000$

Total fixed expenses $ $234,000$

Required:

$3.$ If $28,650$ pairs of shoes are sold in a year, what would be Shop $48$s net operating income $($loss$)?$

$4.$ The company is considering paying the Shop $48$ store manager an incentive commission of $80$ cents per pair of shoes $($in addition to the salesperson$$s commission$).$ If this change is made, what will be the new break$-$even point in unit sales and dollar sales?

Note: Do not round intermediate calculations. Round your final answers to the nearest whole number.

$5.$ Refer to the original data. As an alternative to $(4)$ above, the company is considering paying the Shop $48$ store manager $55$ cents commission on each pair of shoes sold in excess of the break$-$even point. If this change is made, what will be Shop $48\text{'}$s net operating income $($loss$)$ if $31,350$ pairs of shoes are sold?

Note: Do not round intermediate calculations.

$6.$ Refer to the original data. The company is considering eliminating sales commissions entirely in its shops and increasing fixed salaries by $$38,700$ annually. If this change is made, what will be Shop $48\text{'}$s new break$-$even point in unit sales and dollar sales?

Note: Do not round intermediate calculations. Required:

Refer to the original data. The company is considering eliminating sales commissions entirely in its shops and increasing fixed

salaries by $$38,700$ annually. If this change is made, what will be Shop $48\text{'}$s new break$-$even point in unit sales and dollar sales?

Note: Do not round intermediate calculations. Required information

$[$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: