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The Dapper Company operates a chain of men's clothing stores that sells 10 different styles of inexpensive men's suits with identical unit costs and selling
The Dapper Company operates a chain of men's clothing stores that sells 10 different styles of inexpensive men's suits with identical unit costs and selling prices. A unit is defined as one suit. Each store has a store manager who is paid a fixed salary Individual salespeople receive a fixed salary and a sales commission. Dapper is considering opening another store that is expected to have the revenue and cost relationships shown here (Click the icon to view the revenue and cost information.) Requirements Data Table Read the requirements Requirement 1. What is the annual breakeven point in (a) units sold and (b) Consider each cuestion independently 1. What is the annual breakeven point in (a) units sold and (b) revenues? 2. If 14,000 units are sold, what will be the stores operating income (loss)? 3. If sales commissions are discontinued and fxed salaries are raised by a total cf Determine the formula to caculate the breakeven point in units. 140.00 Seling price Cost of suits Sales commission Variable cost per unit S 66,000 251,000 40,000 20.000 ent Total fixed costs Contribution margin per unit Brea $88,000, what would be the annual breakeven point in (a) units sold and (b) revenues? 120.00 7.00 (a) Using the current values, caculate the annual breakeven point in units solo 4. Refer to the onginal data. It, in addition to his fixed salary, the store manager is $127.00 units sold to break even. r fixed costs paid a commission of $0.50 per unit sold, what would be the annual breakeven point in (a) units sold and (o) revenues? fixed costs 377.000 5. Refer to the original data. If, in addition to his fixed salary, the store manager is paid a commission of $0.50 per unit in excess of the breakeven point, what would be the store's operating income if 38,000 units were sold? Print Done Print Done
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