Required information [The following information applies to the questions displayed below.] The Fashion Shoe Company operates a chain of women's shoe shops carrying many styles of shoes all sold for $40 per pair. Sales personnel in the shops are paid a sales commission on each pair of shoes sold plus a small base salary. The following data pertains to Shop 48 and is typical of the company's many outlets: Selling price Variable expenses: Invoice cost Sales commission Total variable expenses Fixed expenses: Advertising Rent Salaries Total fixed expenses Per Pair of Shoes $ 40.00 New break-even point in unit sales New break-even point in dollar sales $ 19.50 4.50 $ 24.00 Annual $ 30,000 24,000 120,000 $ 174,000 Required: 6. Refer to the original data. The company is considering eliminating sales commissions entirely in its shops and increasing fixed salaries by $31,000 annually. If this change is made, what will be Shop 48's new break-even point in unit sales and dollar sales? Note: Do not round intermediate calculations. pairs
Required information [The following information applies to the questions displayed below.] The Fashion Shoe Company operates a chain of women's shoe shops carrying many styles of shoes all sold for $40 per pair. Sales personnel in the shops are paid a sales commission on each pair of shoes sold plus a small base salary. The following data pertains to Shop 48 and is typical of the company's many outlets: Selling price Variable expenses: Invoice cost Sales commission Total variable expenses Fixed expenses: Advertising Rent Salaries Total fixed expenses Per Pair of Shoes $ 40.00 New break-even point in unit sales New break-even point in dollar sales $ 19.50 4.50 $ 24.00 Annual $ 30,000 24,000 120,000 $ 174,000 Required: 6. Refer to the original data. The company is considering eliminating sales commissions entirely in its shops and increasing fixed salaries by $31,000 annually. If this change is made, what will be Shop 48's new break-even point in unit sales and dollar sales? Note: Do not round intermediate calculations. pairs
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A-2
![Required information
[The following information applies to the questions displayed below.]
The Fashion Shoe Company operates a chain of women's shoe shops carrying many styles of shoes all sold for $40 per
pair. Sales personnel in the shops are paid a sales commission on each pair of shoes sold plus a small base salary.
The following data pertains to Shop 48 and is typical of the company's many outlets:
Selling price
Variable expenses:
Invoice cost
Sales commission
Total variable expenses
Fixed expenses:
Advertising
Rent
Salaries
Total fixed expenses
Per Pair of
Shoes
$ 40.00
New break-even point in unit sales
New break-even point in dollar sales
$19.50
4.50
$24.00
Annual
$ 30,000
24,000
120,000
$ 174,000
Required:
6. Refer to the original data. The company is considering eliminating sales commissions entirely in its shops and increasing fixed
salaries by $31,000 annually. If this change is made, what will be Shop 48's new break-even point in unit sales and dollar sales?
Note: Do not round intermediate calculations.
pairs](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9fad3a61-5282-41a0-9bbc-c7bdc32f595b%2F3d528c1c-52fe-453c-ab5f-23bd40d2bc8d%2F25dm7ng_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
The Fashion Shoe Company operates a chain of women's shoe shops carrying many styles of shoes all sold for $40 per
pair. Sales personnel in the shops are paid a sales commission on each pair of shoes sold plus a small base salary.
The following data pertains to Shop 48 and is typical of the company's many outlets:
Selling price
Variable expenses:
Invoice cost
Sales commission
Total variable expenses
Fixed expenses:
Advertising
Rent
Salaries
Total fixed expenses
Per Pair of
Shoes
$ 40.00
New break-even point in unit sales
New break-even point in dollar sales
$19.50
4.50
$24.00
Annual
$ 30,000
24,000
120,000
$ 174,000
Required:
6. Refer to the original data. The company is considering eliminating sales commissions entirely in its shops and increasing fixed
salaries by $31,000 annually. If this change is made, what will be Shop 48's new break-even point in unit sales and dollar sales?
Note: Do not round intermediate calculations.
pairs
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