Managerial Accounting

posted by .

• Calculate the annual break-even point in dollar sales and in unit sales for Shop 48.
• Prepare a CVP graph showing cost and revenue data for Shop 48 from zero shoes up to 17,000 pairs of shoes sold each year. Clearly indicate the break-even point on the graph.
• If 12,000 pairs of shoes are sold in a year, what would be Shop 48's net operating income or loss?
The company is considering paying the store manager of Shop 48 an incentive commission of Shop 48 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 dollar sales and in unit sales?
• Refer to the original data. As an alternative to (4) above, the company is considering paying the store manager 50 cents commission on each pair of shoes sold in excess of the break-even point. If this change is made, what will be the shop's net operating income or loss if 15,000 pairs of shoes are sold?
• Refer to the original data. The company is considering eliminating sales commissions entirely in its shops and increasing fixed salaries by $31,500 annually. If this change is made, what will be the new break-even point in dollar sales and in unit sales for Shop 48? Would you recommend that the change be made? Explain.
Carefully review the Grading Rubric for the criteria that will be used to evaluate your assignment

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. marketing

    1.A store has fixed costs of 80,000 and an avarage gross margin of 26%. Variable expenses are estimated to be 6% of sales. a.calculate the break-even sales volume. b.calculate the profit/losses for sales of 300,000 I got the formulas: …
  2. accounting

    I am having a hard time with this can anyone help me out?
  3. simple equations ( math)

    A shop sold 216 pairs of shoes in a month, which was equal to 60% of the number of pairs in the shop. How many pairs of shoes were in the shop at first?
  4. Math

    A shoe manufacturer determines that the annual cost of making x pairs of one type of shoe is $30 per pair plus $100,000 in fixed overhead costs. Each pair of shoes that is manufactured is sold wholesale for $50. a. Find the equations …
  5. Managerial Accounting

    Tiger Golf Accessories sells golf shoes, gloves and laser-guided range finder that measures distance Below are unit cost and sales data. Shoes Gloves Range find Unit sales $100 $30 $250 Unit VC 60 10 200 Unit CM $40 $20 $50 Sales Mix …
  6. Managerial Accounting

    The Fashion Shoe Company operates a chain of women’s shoe shops around the country. The shops carry many styles of shoes that are all sold at the same price. Sales personnel in the shops are paid a substantial commission on each …
  7. accounting

    In 2007, Clyde Blackstock opened Clyde’s Pets, a small retail shop selling pet supplies. On December 31, 2007 Clyde’s accounting records showed the following: Merchandise inventory at December 31, 2007 $10,250 Merchandise inventory …
  8. Accounting

    E6-9 (a,b) Tiger Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown below are unit cost and sales data. Pairs of Shoes Pairs of Gloves Range Finder Unit sales price $100 $30 $250 …
  9. Accounting

    Shirts Unlimited operates a chain of shirt stores that carry many styles of shirts that are all sold at the same price. To encourage sales personnel to be aggressive in their sales efforts, the company pays a substantial sales commission …
  10. MSU

    Shirts Unlimited operates a chain of shirt stores that carry many styles of shirts that are all sold at the same price. To encourage sales personnel to be aggressive in their sales efforts, the company pays a substantial sales commission …

More Similar Questions