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inysia [295]
2 years ago
11

The Fashion Shoe Company operates a chain of women’s shoe shops that carry many styles of shoes that are all sold at the same pr

ice. 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: Per Pair of Shoes Selling price $ 30.00 Variable expenses: Invoice cost $ 8.00 Sales commission 7.00 Total variable expenses $ 15.00 Annual Fixed expenses: Advertising $ 35,000 Rent 30,000 Salaries 145,000 Total fixed expenses $ 210,000 6. Refer to the original data. The company is considering eliminating sales commissions entirely in its shops and increasing fixed salaries by $38,600 annually. If this change is made, what will be Shop 48's new break-even point in unit sales and dollar sales? (Do not round intermediate calculations.)
Business
1 answer:
Stella [2.4K]2 years ago
5 0

Shop 48's new break-even point in unit sales is 14,000 units and dollar sales is $420,000.

<h3>Break even point in units and sales</h3>

Break even point in units sales

Break even point= Fixed cost /Contribution per units

Break even point=$210,000/ ($30-15)

Break even point=$210,000/ $15

Break even point=14,000 units

Break even point in dollar sales:

Break even point in dollar sales =14,000 ×$30

Break even point in dollar sales=$420,000

Therefore Shop 48's new break-even point in unit sales is 14,000 units and dollar sales is $420,000.

Learn more about break even point in units and sales here:brainly.com/question/15281855

#SPJ1

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Deflation is a period where supply for most products is less than demand.
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The answer is: True…..
6 0
2 years ago
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During the taking of its physical inventory on December 31, 2014, Barry's Bike Shop incorrectly counted its inventory as $225,51
Kryger [21]

Answer:

The inventory would be increased by $55,283 and the profit has been decreased by the same amount.

Explanation:

The reason is that the closing inventory has been increased by the difference of the correct and incorrect amount which is:

Closing inventory difference = $225,513 - $170,230 = $55,283

This will increase the closing inventory in the balance sheet and the increase in the closing inventory will decrease the cost of goods sold. The lower the cost of goods sold the greater is the profit.

6 0
3 years ago
Babcock Company received the following reports of its defined benefit pension plan for the current calendar year: PBO Plan asset
labwork [276]

Answer:

The pension expense for the year is $400600

Explanation:

From the question; we have:

Babcock Company received the following reports of its defined benefit pension plan for the current calendar year:

PBO                                                     Plan assets    

Balance, January 1         650,000      Balance, January 1    530,000

Service cost                      369,00      Actual return                 51,000

Interest cost                       74,000     Annual contribution   226,000

Benefits paid                   (97,000 )     Benefits paid              (97,000 )

Balance,December 31   $996,000   Balance, December 31  $710,000

The long-term expected rate of return on plan assets is 8%. Assuming no other data are relevant, what is the pension expense for the year

From the information given;we have the plan assets to be $530000

the expected rate of return on plan assets = 8%

therefore

expected return on the plan assets = 8%  × $530000

expected return on the plan assets = 0.08  × $530000

expected return on the plan assets = $42400

The pension expense for the year can be determined by the formula:

pension expense = service cost + interest cost - expected return on plan

                                assets.

pension expense = $(369000 + 74000 -42400)

pension expense =  $(443000 - 42400)

pension expense =  $400600

6 0
3 years ago
You are bullish on Telecom stock. The current market price is $80 per share, and you have $10,000 of your own to invest. You bor
drek231 [11]

Answer:

return on equity = 10 %

Explanation:

given data

current market price = $80 per share

own  invest = $10,000

borrow  additional =  $10,000

interest rate = 8% per year

invest  in stock = $20,000

to find out

rate of return

solution

we know here total investment is 80 × 250 shares = $20,000

and

stock price rise 9 % that is

stock price = 80 × ( 1 + 9%)

stock price = $87.2

and after 1 year investment value will be = 250 × 87.2

after 1 year investment value = $21800

so

payment to broker will be

payment to broker = borrow fund + interest

payment to broker = $10000 × ( 1+ 8% )

payment to broker = $10800

so remaining after payment to broker is = $21800 - $10800  =  $11000

so

return on equity is here

return on equity = \frac{11000-10000}{10000}

return on equity = 10 %

5 0
3 years ago
Global Company sold merchandise to Montana Industries for cash, $3,450. The cost of merchandise sold was $1,850. Global Company
kherson [118]

Answer:

C. credit to Customer Refunds Payable, $900  

Explanation:

Global Company sold merchandise to Montana Industries for cash, $3,450. The cost of merchandise sold was $1,850.

Global Company refunded Montana Industries $900 for returned merchandise. The cost of merchandise sold was $600.

The entry that will be recorded by Global Company in the journal entry for the refund from the sale a credit to Customer Refunds Payable, $900  

<u>This amount of $900 will eventually be netted off against the accounts receivable amount for the total sales of $3,450, reducing the amount payable by the customer to $2550</u>

3 0
3 years ago
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