Threads Unlimited operates a chain of shirt stores that carry m same price. To encourage sales personnel to be aggressive in substantial sales commission on each shirt sold. Sales personnel The following worksheet contains cost and revenue data for company's many outlets: Per Shirt 28 Selling price Variable expenses Invoice cost Sales commission 13 Total variable expenses $ 18 Annual Fixed expenses: Rent Advertising Salaries S 65,000 150,000 55,000 Total fixed expenses s 270,000 The company has asked you, as a member of ts planning group. t its stores and company policies 1. caicuiate the annual break-even point in doliar sales and in Recgairedate the annual break even point in dolar Sales and in un intermediate calculations.) O Type here to search in of shirt stores that cany many styles of shirts that are all sold at the personnel to be aggressive in their sales efforts, the company pays a ach shit sold. Sales personnel also receive a small basic salary ins cost and revenue data for Store 45. These data are typical of the per Shirt 28. 13 18 Annual S 65,000 150,000 55,000 S 270,000 as a member of its planning group, to assist in some basic analysis of ven point in dollar sales and in unit sales for Store 45. (Do not round The company has asked you, as a member of its planning grou its stores and company policies Required: 1. Calculate the annual break-even point in dollar sales and in intermediate calculations.) Break-even point in unit sales shirts Break-even point in dollar sales 3. If 26,000 shirts are sold in a year, what would be Store 45's round intermediate calculations. Input the amount as a posit dollar sales and in unit sales for Store 45. (Do not round shirts would be Store 45's net operating income or loss? (Do not the amount as a positive value.) 4. The company is considering paying the store manager of shirt (in addition to the salespersons' commissions). If this c even point in dollar sales and in unit sales? (Do not round ir shirts New break-even point in unit sales New break-even point in dollar sales 5. Refer to the original data. As an alternative to (4) above, the manager a $1 commission on each shirt sold in excess of th what will be the store's net operating income or loss if 32,00 intermediate calculations. Input the amount as a positive g the store manager of Store 45 an incentive commission of $1 per ns' commissions). If this change is made, what will be the new break- it sales? (Do not round intermediate calculations.) es shirts ales alternative to (4) above, the company is considering paying the store ach shirt sold in excess of the break-even point. If this change is made ating income or loss if 32,000 shirts are sold in a year? (Do not round ut the amount as a positive value.) 6. Refer to the original data. The company is considering elimin stores and increasing fixed salaries by $96,000 annually. If this break-even point in dollar sales and in unit sales in Stor calculations.) New break-even point in unit sales New break-even point in dollar sales shirts References eBook & Resources Worksheet Learning Objective 05 changes in activily affe and net Difficulty: 1 Easy is considering eliminating sales commissions entirely in its 6,000 annually. If this change is made, what will be the new n unit sales in Store 45? (Do not round intermediate shirts ces in activity affeci contribution 0
