Angie Silva has recently opened The Sandal Shop in Brisbane, Australia, a store that specializes in fashionable sandals. In time, she hopes to open a chain of sandal shops. As a first step, she has gathered the following data for her new store: Sales price per pair of sandals$ 30Variable expenses per pair of sandals15Contribution margin per pair of sandals$ 15Fixed expenses per year: Building rental$ 11,300Equipment depreciation11,300Selling9,000Administrative13,400Total fixed expenses$ 45,0001. What is the break-even point in unit sales and dollar sales? (Do not round intermediate calculations.)

Lets understand the basics. Break even point is a point at which no profit no loss condition arise.…

Answered: Angie Silva has recently opened The…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Angie Silva has recently opened The Sandal Shop in Brisbane, Australia, a store that specializes in fashionable sandals. In time, she hopes to open a chain of sandal shops. As a first step, she has gathered the following data for her new store:

Sales price per pair of sandals	$ 30
Variable expenses per pair of sandals	15
Contribution margin per pair of sandals	$ 15
Fixed expenses per year:
Building rental	$ 11,300
Equipment depreciation	11,300
Selling	9,000
Administrative	13,400
Total fixed expenses	$ 45,000

1. What is the break-even point in unit sales and dollar sales? (Do not round intermediate calculations.)

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