5) Pablo Escobar has recently opened a slipper sandal Shop in Brisbane, Australia, a store that...

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5) Pablo Escobar has recently opened a slipper sandal Shop in Brisbane, Australia, a store that specializes in fashionable sleeper sandals. Pablo has just received a degree in business and he is anxious to apply the principles he has learned to his business. In time, he hopes to open a chain of sandal shops. As a first step, he has prepared the following analysis for his new store: Sales price per pair of sandals $40 Variable expenses per pair of sandals 16 Fixed expenses per year: Building rental $15,000 Equipment depreciation 7,000 Selling 20,000 Administrative 18,000 Pablo expects of selling 3,000 pairs of sandals in first year of operation. Required: 1. How many pairs of sandals must be sold each year to break even? What does this represent in total sales dollars? (4) 2. Prepare a CVP graph or a profit graph for the store from zero pairs up to 4,000 pairs of sandals sold each year. Indicate the break-even point on your graph. (4) 5) Pablo Escobar has recently opened a slipper sandal Shop in Brisbane, Australia, a store that specializes in fashionable sleeper sandals. Pablo has just received a degree in business and he is anxious to apply the principles he has learned to his business. In time, he hopes to open a chain of sandal shops. As a first step, he has prepared the following analysis for his new store: Sales price per pair of sandals $40 Variable expenses per pair of sandals 16 Fixed expenses per year: Building rental $15,000 Equipment depreciation 7,000 Selling 20,000 Administrative 18,000 Pablo expects of selling 3,000 pairs of sandals in first year of operation. Required: 1. How many pairs of sandals must be sold each year to break even? What does this represent in total sales dollars? (4) 2. Prepare a CVP graph or a profit graph for the store from zero pairs up to 4,000 pairs of sandals sold each year. Indicate the break-even point on your graph. (4)

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1 Fixed Cost Break Even Point Contribution Margin Where Fi... View the full answer