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inysia [295]
1 year 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]1 year 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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Required Information
il63 [147K]

Answer:

$1140.28

Explanation:

The computation of the net present value of this investment is shown below:-

= Annual Cash flows × Present Value of Annuity Factor (r , n) - Initial Investment

as

Annual cash flows = $8600

Present Value of Annuity Factor (r , n)

r = 10% and n = 4 years

So, the Present Value of Annuity Factor will be the sum of the present value of 4 years at 10%

For Year 1 = 0.9091

For Year 2 = 0.8264

For Year 3 = 0.7513

For Year 4 = 0.6830

Total = 3.1698

Therefore,

Net Present Value = (Cash inflow × Total) -

Initial Investment

= ($8600 × 3.1698) - $26,120  

= $27,260.28 - $26,120

= $1140.28

6 0
3 years ago
Cali Communications reported the figures from its adjusted trial balance and from its​ multi-step income statement for its first
victus00 [196]

Answer:

The preparation is presented below:

Explanation:

The preparation of the retained earnings statement for the year ended July 31, 2018 is presented below:

                                        Cali ​Communications'

                              Retained Earning statement

                           For the year ended July 31, 2018

Beginning balance of retained earning $0

Add: Net income $5,150

Less: Cash Dividend paid -$0

Ending balance of retained earning $5,150

6 0
3 years ago
Flexible exchange rate systems are calculated according to
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Answer:

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Explanation:

If the interest rates rise, but both demand and supply of loanable funds remanin constant, this means that demand and supply remained the same.

This would be a problem in the real world, because when interest rates rise, what should happen is that the supply of funds rise, while demand falls, because a rise in interest rates makes investment more expensive since interset rates are simply the price of the loanable funds.

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