Required information

[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	$	30
Variable expenses per pair of sandals		15
Contribution margin per pair of sandals	$	15
Fixed expenses per year:
Building rental	$	11,300
Equipment depreciation		11,300
Selling		9,000
Administrative		13,400
Total fixed expenses	$	45,000

4. Angie now has two salespersons working in the storeone full time and one part time. It will cost her an additional $9,000 per year to convert the part-time position to a full-time position. Angie believes that the change would increase annual sales by $39,000. Should she convert the position? Use the incremental approach.