The Fashion Shoe Company operates a chain of women$$s shoe shops that carry many styles of shoes that are all sold at the same price. Sales personnel in the shops are paid a sales commission on each pair of shoes sold plus a small base salary.

The following data pertains to Shop $48$ and is typical of the company$$s many outlets:

Per Pair of Shoes

Selling price $ $30\mathrm{.}00$

Variable expenses:

Invoice cost $ $8\mathrm{.}00$

Sales commission $7\mathrm{.}00$

Total variable expenses $ $15\mathrm{.}00$

Annual

Fixed expenses:

Advertising $ $35,000$

Rent $30,000$

Salaries $145,000$

Total fixed expenses $ $210,000$