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 Variable expenses per pair of sandals Contribution margin per pair of sandals Fixed expenses per year: Building rental Equipment depreciation. Selling Administrative Total fixed expenses Break-even point in unit sales Break-even point in dollar sales $ 26 13 $ 13 Required: 1. What is the break-even point in unit sales and dollar sales? (Do not round intermediate calculations.) pairs $ 5,900 5,900 5,900 21,300 $ 39,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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[The following information applies to the questions displayed below.]
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
Variable expenses per pair of sandals
Contribution margin per pair of sandals
Fixed expenses per year:
Building rental
Equipment depreciation
Selling
Administrative
Total fixed expenses
Break-even point in unit sales
Break-even point in dollar sales
$ 26
13
$ 13
Required:
1. What is the break-even point in unit sales and dollar sales? (Do not round intermediate calculations.)
pairs
$ 5,900
5,900
5,900
21,300
$ 39,000
Transcribed Image Text:5 Required information [The following information applies to the questions displayed below.] 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 Variable expenses per pair of sandals Contribution margin per pair of sandals Fixed expenses per year: Building rental Equipment depreciation Selling Administrative Total fixed expenses Break-even point in unit sales Break-even point in dollar sales $ 26 13 $ 13 Required: 1. What is the break-even point in unit sales and dollar sales? (Do not round intermediate calculations.) pairs $ 5,900 5,900 5,900 21,300 $ 39,000
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