The Fashion Shoe Company operates a chain of womens shoe shops around the country. The shops carry many styles of shoes that are all sold at the same price. Sales personnel in the shops are paid a substantial commission on each pair of shoes sold ( in addition to a small basic salary) to encourage them in their sales efforts.

The following cost and revenue data relate to Shop 60 and are typical of of the companys many outlets:

Sales price

Variable expenses:

Invoice cost Sales commission Total variable expenses

Per pair of shoes 30.00

13.50 4.50 18.00

Annual fixed expenses: Advertising Rent Salaries

Total fixed expenses

30,000

20,000 100,000 150,000

Requirements:

Compute the annual break-even point in value of sales () and in unit sales for Shop 50.