Slippers Inc. produces and sells shoes in chain stores. Company sells 10 kinds of cheap shoes with similar costs and selling prices. Each store has a manager working for a salary. Each salesperson is paid salary plus a sales Premium. Company pays extra 1 TL premium to sales person and 1 TL to manager for each pair of shoes sold beyond BEP. Company is to decide whether to open up or not a new store. Budgeted revenue and costs are given below.

1. Slippers Inc. produces and sells shoes in chain stores. Company sells 10 kinds of cheap shoes with similar costs and selling prices. Each store has a manager working for a salary. Each salesperson is paid salary plus a sales Premium. Company pays extra 1 TL premium to sales person and 1 TL to manager for each pair of shoes sold beyond BEP. Company is to decide whether to open up or not a new store. Budgeted revenue and costs are given below. Per pair (TL) Unit variable data Price 50,00 Unit manufacturing cost 25,00 Sales commissions 5,00 Unit variable costs 30,00 Annual fixed costs Rent 100.000 Salaries 300.000 Advertisement 180.000 Other fixed costs 20.000 Total fixed costs 600.000 Required: (evaluate each item seperately) a) Compute BEP in units and TL. b) Compute operating profit (loss) assuming 35,000 pairs of shoes are sold. c) Compute BEP in units and TL if company increases salaries by TL 150,000 instead of paying sales premium. d) Compute target sales in units and TL to earn TL 180,000 operating profit. e) Assume Company pays extra 1 TL premium to sales person for each pair sold over 40.000 pairs. Compute operating profit if 50,000 pairs of shoes are sold