$[$The following information applies to the questions displayed below.$]$

Angie Silva has recently opened The Sandal Shop in Brisbane, Australia, a store that specializes in fashionable sandals. In time, she hopes to open a chain of sandal shops. As a first step, she has gathered the following data for her new store:

Sales price per pair of sandals $ $32$

Variable expenses per pair of sandals $16$

Contribution margin per pair of sandals $ $16$

Fixed expenses per year:

Building rental $ $6,400$

Equipment depreciation $8,000$

Selling $4,800$

Administrative $12,800$

Total fixed expenses $ $32,000$

$4.$ Angie now has two salespersons working in the store$$one full time and one part time. It will cost her an additional $$8,000$ per year to convert the part$-$time position to a full$-$time position. Angie believes that the change would increase annual sales by $$48,000.$ Should she convert the position? Use the incremental approach.

Multiple Choice

Yes

No