The Fashion Shoe Company operates a chain of women's shoe shops aroued the country. The shops cany many syles of thoes that are all sold at the same prise. Sales personiet in the shops are paid a substantial comminion en each pair of shoes sold (in addition to a small basie saiary) in onder to encourage them to be aezressive in their ales efforth. The following cost and revenue data relate to shop 48 and are typical of one of the company's many outiets: Required: 2. Frepare a CVr gapts showing cont and revenue data for Shop 45 fiom a tero level of activity up to 20.000 pairs of shoes seld each yeaf. Clealy indicsie the break even point en the grapt. 3. If 12.000 pairs of thoes are wid in a jeaf, what would be 5hep 4 tris net income of loss? 4. The compary is conidering paying the Mere manager of Shep 4 s an incentive consmisien of 75 cents per pair of thoss (ie addition to the salespenon's commission). If this change is made, what will be the new breakeven point in dollat ales and in anit ales? 5. Refer to the original data. As as alterastive to Requisement (4), the company is coesidering pying the store mansper 30 cents in comminsion en each psir of thoes sold in exces of the bectseven point. If this change is made, what will be the shop's net income or loss if I5.000 poin of shoes are sold? taiaries by 531.s00 annaally. If this change is made, wtut will be the new bieak even poiat in doliar alales and uait sales for Stop 457 Would goo reconvenest that the change be made? Explain. The Fashion Shoe Company operates a chain of women's shoe shops aroued the country. The shops cany many syles of thoes that are all sold at the same prise. Sales personiet in the shops are paid a substantial comminion en each pair of shoes sold (in addition to a small basie saiary) in onder to encourage them to be aezressive in their ales efforth. The following cost and revenue data relate to shop 48 and are typical of one of the company's many outiets: Required: 2. Frepare a CVr gapts showing cont and revenue data for Shop 45 fiom a tero level of activity up to 20.000 pairs of shoes seld each yeaf. Clealy indicsie the break even point en the grapt. 3. If 12.000 pairs of thoes are wid in a jeaf, what would be 5hep 4 tris net income of loss? 4. The compary is conidering paying the Mere manager of Shep 4 s an incentive consmisien of 75 cents per pair of thoss (ie addition to the salespenon's commission). If this change is made, what will be the new breakeven point in dollat ales and in anit ales? 5. Refer to the original data. As as alterastive to Requisement (4), the company is coesidering pying the store mansper 30 cents in comminsion en each psir of thoes sold in exces of the bectseven point. If this change is made, what will be the shop's net income or loss if I5.000 poin of shoes are sold? taiaries by 531.s00 annaally. If this change is made, wtut will be the new bieak even poiat in doliar alales and uait sales for Stop 457 Would goo reconvenest that the change be made? Explain
