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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 price.
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 $ 25.00 Selling price Variable expenses: Invoice cost Sales commission Total variable expenses $ $ 11.50 3.50 15.00 Annual Fixed expenses: Advertising Rent Salaries Total fixed expenses $ 44,000 34,000 170,000 $ 248,000 Required: 1. What is Shop 48's annual break-even point in unit sales and dollar sales? (Do not round intermediate calculations.) pairs Break-even point in unit sales Break-even point in dollar sales 3. If 24,000 pairs of shoes are sold in a year, what would be Shop 48's net operating income (loss)
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