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Manchester Clothing operates a chain of shirt stores that carry many styles of shirts that are all sold at the same price. To encourage sales
Manchester Clothing 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 table contains cost and revenue data for Store 52. These data are typical of the company's many outlets: $ 40.00 $ 18.00 7.00 Selling price per shirt Variable expenses per shirt: Invoice cost.. Sales commission.. Total variable expenses per shirt Fixed expenses per year: Rent Advertising Salaries... $ 25.00 $ 80,000 150,000 70,000 $300,000 Total fixed expenses per year. The company has asked you, as a member of its planning group, to assist in some basic analysis of its stores and company policies. Required: 2. Prepare a CVP graph showing cost and revenue data for Store 52 from zero shirts up to 30,000 shirts sold each year. Please show all the necessary information. (8 marks)
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