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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 Selling price $ 25.00 Variable expenses: $ 10.50 Sales commission Total variable expenses $ 15.00 Invoice cost 4.50 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
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