Threads Unlimited operates a chain of shirt stores that carry many styles of shirts that are all sold at the same price. To encourage sales personnel to be aggressive in their sales efforts, the company pays a substantial sales commission on each shirt sold. Sales personnel also receive a small basic salary.

The following worksheet contains cost and revenue data for Store 45. These data are typical of the company's many outlets:

cch Problems i Selling price Per Shirt $ 47 Variable expenses: Invoice cost Sales commission $ $ 20 7 Total variable expenses $ 27 Annual Fixed expenses: Rent 100,000 $ 160,000 Advertising 60,000 Salaries Total fixed expenses 320,000 $ The company has asked you, as a member of its planning grc