Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Sun Sports Inc. has several kiosks in large and medium-sized shopping malls that sell various styles of men's and women's sports hats, all at the
Sun Sports Inc. has several kiosks in large and medium-sized shopping malls that sell various styles of men's and women's sports hats, all at the same price. In addition to the regular salary, the company pays a good commission to its salespeople in order to be diligent and proactive in sales. The following selling price and cost information is representative of each of the kiosks individually. Datos por gorro $25 Precio de venta Costos variables Costo por gorro Comisin de venta Total costo variable $11 $3.75 $14.75 Costo anual Costos fijos Salarios Alquiler de quioscos Publicidad Total costos fijos $37,000 $26,000 $52,000 $115,000 o The company wants to review its policies and give additional incentives to boost sales. Provides management with the following analysis of its stores: 1-Find the breakeven point in units and dollars of sale of a kiosk. 09 2-Prepare a cost-volume-profit graph that shows the revenues and costs of a kiosk from 0 to 30,000 hats and the breakeven point. 3-It presents the net operating results (net profit or loss) if 9,000 hats are sold per year. 4-The company is evaluating the possibility of offering a commission of $ 1.50 per hat sold to the kiosk supervisor (in addition to the sales commissions paid to vendors at the kiosk). Determine the new breakeven point in sales dollars and units sold if this commission is added 5-Instead of the commission of $ 1.50 per hat sold above, another alternative that the company wishes to evaluate is to offer the supervisor only $ 1.50 for each hat sold in excess of the breakeven point. If only this commission is applied, what woould the net operating result (net profit or loss) be if 12,000 hats are sold per year? 6-Another third alternative, instead of the above, is to completely eliminate sales commissions and increase fixed salaries by an additional $ 23,500 annually. It presents the breakeven point in dollars and sales units for this alternative. Explain whether or not you would recommend this alternative and why Sun Sports Inc. has several kiosks in large and medium-sized shopping malls that sell various styles of men's and women's sports hats, all at the same price. In addition to the regular salary, the company pays a good commission to its salespeople in order to be diligent and proactive in sales. The following selling price and cost information is representative of each of the kiosks individually. Datos por gorro $25 Precio de venta Costos variables Costo por gorro Comisin de venta Total costo variable $11 $3.75 $14.75 Costo anual Costos fijos Salarios Alquiler de quioscos Publicidad Total costos fijos $37,000 $26,000 $52,000 $115,000 o The company wants to review its policies and give additional incentives to boost sales. Provides management with the following analysis of its stores: 1-Find the breakeven point in units and dollars of sale of a kiosk. 09 2-Prepare a cost-volume-profit graph that shows the revenues and costs of a kiosk from 0 to 30,000 hats and the breakeven point. 3-It presents the net operating results (net profit or loss) if 9,000 hats are sold per year. 4-The company is evaluating the possibility of offering a commission of $ 1.50 per hat sold to the kiosk supervisor (in addition to the sales commissions paid to vendors at the kiosk). Determine the new breakeven point in sales dollars and units sold if this commission is added 5-Instead of the commission of $ 1.50 per hat sold above, another alternative that the company wishes to evaluate is to offer the supervisor only $ 1.50 for each hat sold in excess of the breakeven point. If only this commission is applied, what woould the net operating result (net profit or loss) be if 12,000 hats are sold per year? 6-Another third alternative, instead of the above, is to completely eliminate sales commissions and increase fixed salaries by an additional $ 23,500 annually. It presents the breakeven point in dollars and sales units for this alternative. Explain whether or not you would recommend this alternative and why
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started