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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
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 | $ | 34 |
Variable expenses per pair of sandals | 17 | |
Contribution margin per pair of sandals | $ | 17 |
Fixed expenses per year: | ||
Building rental | $ | 12,800 |
Equipment depreciation | 12,800 | |
Selling | 10,200 | |
Administrative | 15,200 | |
Total fixed expenses | $ | 51,000 |
3. Angie has decided that she must earn a profit of $34,000 the first year to justify her time and effort. How many pairs of sandals must be sold to attain this target profit?
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