styles of shoes that are all sold at the same price. Sales personnel in the shops are paid a substantial commission on each pair of shoes sold (in addition to a small base salary) in order to encourage them to be aggressive in their sales efforts. The following worksheet contains cost and revenue data for Shop 48 and is typical of the company's many outlets: Per Pair of Shoes $30.00 Selling price Variable expenses: Invoice cost Sales commissiorn $9.50 5.50 Total variable expenses $15.00 Annual Fixed expenses: Advertisingg Rent Salaries $58,000 37000 190,000 Total fixed expenses $285,000