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Selling price $32.00 Unit variable cost per pair: Cost of shoes $22.00 Sales commissions 2.50 Total variable costs $24.50 Annual fixed costs: Rent $67,000 Salaries
Selling price $32.00 Unit variable cost per pair: Cost of shoes $22.00 Sales commissions 2.50 Total variable costs $24.50 Annual fixed costs: Rent $67,000 Salaries 206,000 Advertising 82,000 Other fixed costs 21,000 Total fixed costs $376,000 . Requirement; What is the annual breakeven point in? (a) units sold and? (b) revenues? If 31 comma 000 units are? sold, what will be the? store's operating income? (loss)? If sales commissions were discontinued for individual salespeople in favour of an $ 85 comma 000 increase in fixed? salaries, what would be the annual breakeven point in? (a) units sold and? (b) revenues? Refer to the original data. If the store manager were paid $ 0.30 per unit sold in addition to his current fixed? salary, what would be the annual breakeven point in? (a) units sold and? (b) revenues? Refer to the original data. If the store manager were paid $ 0.30 per unit commission on each unit sold in excess of the breakeven? point, what would be the? store's operating income if 52 comma 000 units were? sold? (This $ 0.30 is in addition to both the commission paid to the sales staff and the store? manager's fixed? salary.)
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