Required information

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The Fashion Shoe Company operates a chain of women's shoe shops carrying many styles of shoes all sold for $$40$ per

pair. 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:

Required:

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 $16,100$ pairs of shoes are sold?

Note: Do not round intermediate calculations.