Angie Silva has recently opened The Sandal Shop in Brisbane, Australia, a store that specializes in...
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Angie Silva has recently opened The Sandal Shop in Brisbane, Australia, a store that specializes in fashionable sandals. In time, she hopes to open a chain of sandal shops. As a first step, she has gathered the following data for her new store: Sales price per pair of sandals Variable expenses per pair of sandals $ 34 17 Contribution margin per pair of sandals $ 17 Fixed expenses per year: Building rental Equipment depreciation Selling Administrative $ 12,800 12,800 10, 200 15, 200 Total fixed expenses $ 51, 000 Required: 1. What is the break-even point in unit sales and dollar sales? (Do not round intermediate calculations.) Break-even point in unit sales pairs Break-even point in dollar sales Angie Silva has recently opened The Sandal Shop in Brisbane, Australia, a store that specializes in fashionable sandals. In time, she hopes to open a chain of sandal shops. As a first step, she has gathered the following data for her new store: Sales price per pair of sandals Variable expenses per pair of sandals $ 34 17 Contribution margin per pair of sandals $ 17 Fixed expenses per year: Building rental Equipment depreciation Selling Administrative $ 12,800 12,800 10, 200 15, 200 Total fixed expenses $ 51, 000 Required: 1. What is the break-even point in unit sales and dollar sales? (Do not round intermediate calculations.) Break-even point in unit sales pairs Break-even point in dollar sales
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Solution Computation of Break Even Point Selling Price 3... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
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