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: Per Pair of Shoes 25.00 Selling price Variable expenses : Invoice cost Sales commission Total variable expenses $ 10.50 4.50 $ 15.00 Annual Fixed expenses: Advertising Rent Salaries Total fixed expenses $ 40,000 37,000 180,000 $ 257,000 Required: 1. What is Shop 48's annual break-even point in unit sales and dollar sales? (Do not round intermediate calculations.) 25,700 pairs Break-even point in unit sales Break-even point in dollar sales $ 642,500 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: Per Pair of Shoes $ 25.00 Selling price Variable expenses: Invoice cost Sales commission Total variable expenses $ 10.50 4.50 $ 15.00 Annual Fixed expenses: Advertising Rent Salaries Total fixed expenses $ 40,000 37,000 180,000 $ 257,000 3. If 25,400 pairs of shoes are sold in a year, what would be Shop 48's net operating income (loss)? Net operating loss $ 25,500 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: Per Pair of Shoes $ 25.00 Selling price Variable expenses: Invoice cost Sales commission Total variable expenses $ 10.50 4.50 $ 15.00 Annual Fixed expenses: Advertising Rent Salaries Total fixed expenses $ 40,000 37,000 180,000 $ 257,000 4. The company is considering paying the Shop 48 store manager an incentive commission of 70 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? (Do not round intermediate calculations. Round your final answers to the nearest whole number.) pairs New break-even point in unit sales New break-even point in dollar sales 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: Per Pair of Shoes $ 25.00 Selling price Variable expenses: Invoice cost Sales commission Total variable expenses $ 10.50 4.50 15.00 Annual Fixed expenses: Advertising Rent Salaries Total fixed expenses $ 40,000 37,000 180,000 $ 257,000 5. Refer to the original data. As an alternative to (4) above, the company is considering paying the Shop 48 store manager 45 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's net operating income (loss) if 28,200 pairs of shoes are sold? (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: Per Pair of Shoes $ 25.00 Selling price Variable expenses : Invoice cost Sales commission Total variable expenses $ 10.50 4.50 $ 15.00 Annual Fixed expenses : Advertising Rent Salaries Total fixed expenses $ 40,000 37,000 180,000 $ 257,000 6. Refer to the original data. The company is considering eliminating sales commissions entirely in its shops and increasing fixed salaries by $30,100 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.) pairs New break-even point in unit sales New break-even point in dollar sales
