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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
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 $ 30.00 Selling price Variable expenses: Invoice cost Sales commission Total variable expenses $ 11.00 4.00 15.00 $ Annual Fixed expenses: Advertising Rent Salaries Total fixed expenses $ 33,000 23,000 115,000 $ 171,000 6. Refer to the original data. The company is considering eliminating sales commissions entirely in its shops and increasing fixed salaries by $32,300 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.) New break-even point in unit sales pairs New break-even point in dollar sales
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