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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
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: Selling price Variable expenses: Invoice cost Per Pair of Shoes $ 20.00 $ 4.50 Sales commission 5.50 Total variable expenses $ 10.00 Annual Advertising Fixed expenses: Rent Salaries Total fixed expenses 43,000 30,000 150,000 $ 223,000 Problem 5-26 (Algo) Part 3 3. If 21,900 pairs of shoes are sold in a year, what would be Shop 48's net operating income (loss)?
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