Required:5. Refer to the original data. As an alternative to (4) above, the company is considering paying the Shop 48 store manager 55 centscommission on each pair of shoes sold in excess of the break-even point. If this change is made, what will be Shop 48's net operatingincome (loss) if 13,550 pairs of shoes are sold?Note: Do not round intermediate calculations. 152731Required information[The following information applies to the questions displayed below]The Fashion Shoe Company operates a chain of women's shoe shops that carry many styles of shoes that are all sold atthe same price. Sales personnel in the shops are paid a sales commission on each pair of shoes sold plus a small basesalary.The following data pertains to Shop 48 and is typical of the company's many outlets:Per Pair ofShoes$40.00Selling priceVariable expenses:Invoice costSales commissionTotal variable expensesFixed expensesAdvertisingmontSalariesTotal fixed expenses$ 16.004.00$ 20.00Annual45,00031,000155,000$ 231,000-

A breakeven point is the production level at which total production revenue equals total production…

Required: 5. Refer to the original data. As an alternative to (4) above, the company is considering paying the Shop 48 store manager 55 cents commission on each pair of shoes sold in excess of the break-even point. If this change is made, what will be Shop 48's net operating income (loss) if 13,550 pairs of shoes are sold? Note: Do not round intermediate calculations.

Required: 5. Refer to the original data. As an alternative to (4) above, the company is considering paying the Shop 48 store manager 55 cents commission on each pair of shoes sold in excess of the break-even point. If this change is made, what will be Shop 48's net operating income (loss) if 13,550 pairs of shoes are sold? Note: Do not round intermediate calculations.

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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In each of the following cases, calculate the accounting break-even and the cash break- even points. Ignore any tax effects in calculating the cash break-even. (Do not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Case 123 Case 1 2 3 Unit Price $ 2,980 44 8 Unit Varlable Cost $1,640 39 3 Accounting break-even Fixed Costs $ 7,200,000 275,000 5,800 Cash break-even Depreciation $2,900,000 183,000 1,100
Fill in the missing data for each of the following independent cases. (Ignore income taxes.) Note: Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required. 1. 2. 3. 4. Sales Revenue Variable Expenses 225,000 50,000 $ 98,000 145,000 18,000 Total Contribution Margin 48,000 290,000 Fixed Expenses 78,400 Net Income 200,000 20,800 Break-Even Sales Revenue $ 98,000 225,000
Subject :- Accounting
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Required information [The following information applies to the questions displayed below.] Munoz Company makes and sells products with variable costs of $24 each. Munoz incurs annual fixed costs of $441,000. The current sales price is $87. Note: The requirements of this question are interdependent. For example, the $252,000 desired profit introduced in Requirement c also applies to subsequent requirements. Likewise, the $80 sales price introduced in Requirement d applies to the subsequent requirements. Required e. If fixed costs drop to $308,000, what level of sales is required to earn the desired profit? Express your answer in units and dollars. Prepare an income statement using the contribution margin format. Complete this question by entering your answers in the tabs below. Req E1 Req E2 If fixed costs drop to $308,000, what level of sales is required to earn the desired profit? Express your answer in units and dollars. Note: Do not round intermediate calculations. Round your final…
3. What was the contribution toward fixed expenses and profits for each snowboard sold during the quarter? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) Contribution Answer is not complete. per snowboard 4. What would operating income be if only 3,400 snowboards were sold in a quarter? You can assume no change to fixed expenses will occur if sales decline to 3,400 snowboards. (Do not round intermediate calculations. Round your final answer to nearest whole dollar.) Operating income X Answer is not complete.