Question
Required information [The following information applies to the questions displayed below.] Angie Silva has recently opened The Sandal Shop in Brisbane, Australia, a store
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 Variable expenses per pair of sandals Contribution margin per pair of sandals Fixed expenses per year! Building rental Equipment depreciation Selling Administrative Total fixed expenses $ 26 13 $ 13 $ 5,900 5,900 5,900 21,300 $ 39,000 4. Angie now has two salespersons working in the store-one 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. Angle believes that the change would increase annual sales by $26,000. Should she convert the position? Use the incremental approach. Multiple Choice Yes No
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