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The MemoryFit Company operates a chain of men's clothing stores that sells 10 different styles of inexpensive men's suits with identical unit costs and selling
The MemoryFit Company operates a chain of men's clothing stores that sells 10 different styles of inexpensive men's suits with identical unit costs and selling prices. A unit is defi as one suit. Each store has a store manager who is paid a fixed salary. Individual salespeople receive a fixed salary and a sales commission. MemoryFit is considering opening an store that is expected to have the revenue and cost relationships shown here G Requirements Data Table Consider each question independently: 1. What is the annual breakeven point in (a) units sold and (b) revenues? 2. If 8,000 units are sold, what will be the store's operating income (loss)? 3. If sales commissions are discontinued and fixed salaries are raised by a total of Unit Variable Data (per suit Annual Fixed Costs Selling price Cost of suits Sales commission Variable cost per unit 100.00 Rent 75.00 Salaries 11.00 Advertising 86.00 S 35,000 375,000 45,000 21,000 $ 476,000 $88,000, what would be the annual breakeven point in (a) units sold and (b) revenues? 4. Refer to the original data. If, in addition to his fixed salary, the store manager is Other fixed costs paid a commission of S0.40 per unit sold, what would be the annual breakeven point in (a) units sold and (b) revenues? Total fixed costs 5. Refer to the original data. If, in addition to his fixed salary, the store manager is paid a commission of S0.40 per unit in excess of the breakeven point, what would be the store's operating income if 37,000 units were sold
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