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
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
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 4PB: West Island distributes a single product. The companys sales and expenses for the month of June are...
Related questions
Question
#16
Please show your complete solution and answer. Thank you!
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
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
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning