. The Bata shoe company operates a chain of shoe stores that sell 10 different styles of shoes of inexpensive mens shoes with identical unit costs and selling prizes. A unit is defined as a pair of shoes. Each store has a store manager who is paid a fixed salary. Individual sales people receive a fixed salary and a sales commission. Bata shoe company is considering opening another store that is expected to have the revenues and the cost relationship shown below

	Unit Variable data (per pair of shoes) Sh.	Annual Fixed Costs Sh.
1	Selling Price 30.00	Rent 60,000/=
2	Cost of shoes 19.50	Salaries 200,000/=
3	Sales Commission 1.50	Advertising 80,000/=
4	Variable cost per unit 21.00	Other Fixed costs 20,000/=
5		Total fixed cost 360,000/=

Consider the following Independently

a) What is the annual Break-even Point in a) Units sold, b) Revenues?

b) If 35,000 Units are sold what will be the stores operating Income/Loss?

c) If Sales commissions are discontinued and fixed salaries are raised by a total of 81,000/= What would be the annual Break-even point in a) Units sold and b) Revenues?

d) Refer to the original data, if in addition to his fixed salary, the store manager is paid a commission of 30 cents per unit sold what would be the annual break-even point in a) units sold and b) Revenues?

e) Refer to the original data, if in addition to his fixed salary, the store manager is paid a commission of 30cts per unit in excess of the break-even point, what would be the stores operating income if 50,000 units are sold?

b. The Renowski Company has three products lines A, B, and C with contribution margin of 3/=, 2/= and 1/=. Respectively. The president foresees sales of 200,000 units in the coming period consisting of 20,000 units of A, 100,000 units of B, 80,000 units of C. The companys fixed cost for the period is Sh. 255,000/=

a) What is the companys break-even point in units, assuming that the given sales mix is maintained?

b) If the sales mix is maintained, what is the total contribution margin when 200,000 units are sold? What is the operating income?

c) What would operating income be if 20,000 units of A, 80,000 units of B and 100,000 units of C were sold? What is the new break even point in units if these relationships persist in the next period?