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URGENT PLEASE HELP! Glamour Accessories operates a kiosk at the local mall, selling cell phone covers for $30 each. Glamour Accessories currently pays $1,000 a
URGENT PLEASE HELP!
Glamour Accessories operates a kiosk at the local mall, selling cell phone covers for $30 each. Glamour Accessories currently pays $1,000 a month to rent the space and pays two full-time employees to each work 160 hours a month at $10 per hour. The store shares a manager with a neighboring kiosk and pays 50% of the manager's annual salary of $60,000 and benefits of $12,000. The wholesale cost of the cell phone covers to the company is $10. Read the requirements. Requirements 1. How many cell phone covers does Glamour Accessories need to sell each month to break even? 2. If Glamour Accessories wants to earn an operating income of $5,300 per month, how many cell phone covers does the store need to sell? 3. If the store's hourly employees agreed to a 15% sales-commission-only pay structure, instead of their hourly pay, how many cell phone covers would Glamour Accessories need to sell to earn an operating income of $5,300 ? 4. Assume Glamour Accessories pays its employees hourly under the original pay structure, but is able to pay the mall 10% of its monthly revenue instead of monthly rent. At what sales levels would Glamour Accessories prefer to pay a fixed amount of monthly rent, and at what sales levels would it prefer to pay 10\% of its monthly revenue as rentStep by Step Solution
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