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The Fashion Shoe Company operates a chain of womens shoe shops that carry many styles of shoes that are all sold at the same price.
The Fashion Shoe Company operates a chain of womens 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 and is typical of the companys many outlets: Per Pair of ShoesSelling price$ Variable expenses: Invoice cost$ Sales commissionTotal variable expenses$ AnnualFixed expenses: Advertising$ RentSalariesTotal fixed expenses$ Problem Static Part Refer to the original data. As an alternative to above, the company is considering paying the Shop store manager cents commission on each pair of shoes sold in excess of the breakeven point. If this change is made, what will be Shop s net operating income loss if pairs of shoes are sol
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