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 price. 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 $ 25.00 Variable expenses: Invoice cost 2$ 11.50 Sales commission 3.50 Total variable expenses 2$ 15.00 Annual Fixed expenses: Advertising 2$ 44,000 34,000 170, 000 $ 248,000 Rent Salaries Total fixed expenses 4. The company is considering paying the Shop 48 store manager an incentive commission of 75 cents per pair of shoes (in addition to the salesperson's commission). If this change is made, what will be the new break-even point in unit sales and dollar sales? (Do not round intermediate calculations. Round your final answers to the nearest whole number.) New break-even point in unit sales New break-even point in dollar sales pairs
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 price. 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 $ 25.00 Variable expenses: Invoice cost 2$ 11.50 Sales commission 3.50 Total variable expenses 2$ 15.00 Annual Fixed expenses: Advertising 2$ 44,000 34,000 170, 000 $ 248,000 Rent Salaries Total fixed expenses 4. The company is considering paying the Shop 48 store manager an incentive commission of 75 cents per pair of shoes (in addition to the salesperson's commission). If this change is made, what will be the new break-even point in unit sales and dollar sales? (Do not round intermediate calculations. Round your final answers to the nearest whole number.) New break-even point in unit sales New break-even point in dollar sales pairs
Chapter2: Computing Wages And Salaries
Section: Chapter Questions
Problem 21PA
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Transcribed Image Text: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 price. 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
$
25.00
Variable expenses:
Invoice cost
$
11.50
Sales commission
3.50
Total variable expenses
15.00
Annual
Fixed expenses:
Advertising
$
44,000
34,000
170,000
Rent
Salaries
Total fixed expenses
$ 248,000
4. The company is considering paying the Shop 48 store manager an incentive commission of 75 cents per pair of shoes (in addition to
the salesperson's commission). If this change is made, what will be the new break-even point in unit sales and dollar sales? (Do not
round intermediate calculations. Round your final answers to the nearest whole number.)
New break-even point in unit sales
pairs
New break-even point in dollar sales
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