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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 $20.00 $7.00 $10.00 Selling price Variable expenses: Invoice cost Sales commission 3.00 Total variable expenses Annual Fixed expenses: Advertising Rent Salaries $ 32,000 21,000 105, 000 $ 158,000 Total fixed expenses 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 18,400 pairs of shoes are sold? (Do not round intermediate calculations.) Net operating 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 $20.00 Selling price Variable expenses: Invoice cost Sales commission $7.00 3.00 $10.00 Annual Total variable expenses Fixed expenses: Advertising Rent Salaries $ 32,000 21,000 105, 000 Total fixed expenses $ 158,000 6. Refer to the original data. The company is considering eliminating sales commissions entirely in its shops and increasing fixed salaries by $30,500 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 New break-even point in dollar sales pairs
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