Homework Help is Here – Start Your Trial Now!
Business
Accounting
16. New BEP, change in commission expense. Melsie Shirts operates a chain of stores Drnd the country. The stores carry many styles of shirts that are all sold at the same fon t sales personnel are paid substantial sales commission on each shirt sold on rovar their basic salary. to encourage aggressive sales effort. The following cost and CHAPTER 5 07 PROFIT PLANNING AND COST-VOLUME-PROFIT ANALYSIS Per Year Per Shirt P 45 Fixed expenses: Sales price Variable expenses: Invoice cost Sales commissions Total variable expenses Rent Ådvertising Salaries Total fixed expenses P 80,000 280,000 140.000 P 500.000 18 P 25 Required: 1.. Calculate the annual breakeven point in units and in pesos for Store 22. 2. If 22,000 shirts are sold in a year, what would be Store 22's net income or loss? 3. Suppose the company pays the store manager an incentive commission of P4 per shirt separate from that of the salespersons' commission, what will be the new breakeven point in units and in pesos? emmissio n of RA per

16. New BEP, change in commission expense. Melsie Shirts operates a chain of stores Drnd the country. The stores carry many styles of shirts that are all sold at the same fon t sales personnel are paid substantial sales commission on each shirt sold on rovar their basic salary. to encourage aggressive sales effort. The following cost and CHAPTER 5 07 PROFIT PLANNING AND COST-VOLUME-PROFIT ANALYSIS Per Year Per Shirt P 45 Fixed expenses: Sales price Variable expenses: Invoice cost Sales commissions Total variable expenses Rent Ådvertising Salaries Total fixed expenses P 80,000 280,000 140.000 P 500.000 18 P 25 Required: 1.. Calculate the annual breakeven point in units and in pesos for Store 22. 2. If 22,000 shirts are sold in a year, what would be Store 22's net income or loss? 3. Suppose the company pays the store manager an incentive commission of P4 per shirt separate from that of the salespersons' commission, what will be the new breakeven point in units and in pesos? emmissio n of RA per

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

#16

Please show your solution and answer. Thanks

16. New BEP, change in commission expense. Melsie Shirts operates a chain of stores Driend the country. The stores carry many styles of shirts that are all sold at the same ton ot pales personnel are paid substantial sales commission on each shirt sold on CHAPTER 5 207 PROFIT PLANNING AND COST-VOLUME-PROFIT ANALYSIS Per Year Per Shirt P 45 Sales price Variable expenses: Invoice cost Sales commissions Total variable expenses Fixed expenses: Rent Ādvertising Salaries Total fixed expenses P 80,000 280,000 140.000 P 500.000 18 Р 25 Required: 1.. Calculate the annual breakeven point in units and in pesos for Store 22. If 22,000 shirts are sold in a year, what would be Store 22's net income or loss? 3. Suppose the company pays the store manager an incentive commission of P4 per shirt separate from that of the salespersons' commission, what will be the new breakeven point in units and in pesos? 4. Suppose the company pays the store manager an incentive commission of P4 shirt separate from that of the salespersons' commission, what will be the new profit or loss if 34,000 units shirts are sold? 2. per
Transcribed Image Text:16. New BEP, change in commission expense. Melsie Shirts operates a chain of stores Driend the country. The stores carry many styles of shirts that are all sold at the same ton ot pales personnel are paid substantial sales commission on each shirt sold on CHAPTER 5 207 PROFIT PLANNING AND COST-VOLUME-PROFIT ANALYSIS Per Year Per Shirt P 45 Sales price Variable expenses: Invoice cost Sales commissions Total variable expenses Fixed expenses: Rent Ādvertising Salaries Total fixed expenses P 80,000 280,000 140.000 P 500.000 18 Р 25 Required: 1.. Calculate the annual breakeven point in units and in pesos for Store 22. If 22,000 shirts are sold in a year, what would be Store 22's net income or loss? 3. Suppose the company pays the store manager an incentive commission of P4 per shirt separate from that of the salespersons' commission, what will be the new breakeven point in units and in pesos? 4. Suppose the company pays the store manager an incentive commission of P4 shirt separate from that of the salespersons' commission, what will be the new profit or loss if 34,000 units shirts are sold? 2. per
Expert Solution
steps

Step by step

Solved in 2 steps with 3 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Pricing Decisions
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS