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Short Answer Question #1 (10 marks) #1) Apparel Snowboards - make or buy The company is now producing the heavy-duty bindings used in its most
Short Answer Question \#1 (10 marks) \#1) Apparel Snowboards - make or buy The company is now producing the heavy-duty bindings used in its most popular line of snowboards. The company's accounting department reports the following costs of producing the bindings internally: Short Answer question A2 (5 marks) A2) The Boots Company operates a chain of men's shoe shops around the country. The shops carry many styles of boots that are all sold at the same price. Ssles personnet in the shops are paid a substantial be agrressive in their sair of boos sold (in addition to a small basic salary) in order to encourage them to The following cost and revenue data relate to shop 2 and are typical of ane of the company's many outlets: Required: 1) Calculate the annual break-even point in dollar sales and in unit sales for Shop H2 2) Prepare a CVP graph showing cost and revenue data for Shop #2 from a zero level of activity up to 20,000 pairs of shows sold each year 3) If 12,000 pairs of shows are sold in a year, what would be shop \#2's net income or loss? 4) Refer to the original data. As an alternative to H3 above, the company is considering paying the store manager. 50 cents in commission on each pair of shows sold in excess of the break-even point. If this change is made, what will be the shops net income or loss of 15,000 pairs of shows are sold
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