Question: can someone solve number 3 and 4 with cell reference please A1 The Tops national chain of shirt stores carry many styles of shirts that


A1 The Tops national chain of shirt stores carry many styles of shirts that are all sold at the same A B 1 The Tops national chain of shirt stores carry many styles of shirts that are all sold at the same 2 price. To encourage sales personnel to step up their sales efforts, the company pays a 3 generous sales commission on each shirt sold. Sales personnel also receive a small basic salary. 4 5 The following table contains cost and revenue data for the Bradbury store. These data are 6 typical of the company's many outlets: 7 Selling price S 36.99 8 Variable expenses 9 Invoice cost $ 18.00 10 Sales Commission 7.00 11 $ 25.00 12 Contribution Margin s 11.99 13 Fixed Expenses (annually) 14 Advertising $ 80,000 Rent 150,000 Salaries 70,000 17 $ 300,000 18 19 Part 2 20 Shirts sold 19.000 21 22 Part 3 23 24 Manager commission 3.00 25 Part 4 26 Manager commission on unit sales above the 27 breakeven point S 3.00 28 Shirts sold 15 16 1 1 Wies Carry many styles of shirts that are all sold at the same B C DE 25 Part 4 26 Manager commission on unit sales above the 27 breakeven point $ 3.00 28 Shirts sold 23,500 29 30 Part 5 31 Increased fixed salaries $ 107.000 32 Reduction in Commissions $ 7.00 33 34 35 Required: 36 Tops is a fairly new company. The company has asked you, as a member of its planning group, 37 to assist in some basic analysis of its stores and company policies, 38 39 1. Calculate the annual break-even point in dollar sales and in unit sales for the Bradbury store. 40 42 Breakeven Point in Sales - 43 Breakeven Point in Unit Sales = 45 46 2. If 19,000 shirts are sold in a year, what will be the Bradbury store's operating income or loss? 47 48 49 50 Operating income (loss) 51 3. The company is considering paying the Bradbury store manager an incentive commission of $3 per shirt (in addition to the salesperson's commissions). If this change is made, what will be the new break-even point in dollar sales and in unit sales? 5 6 Breakeven Point in Sales = 57 58 Breakeven Point in Unit Sales = 59 60 4. Refer to the original data. As an alternative to (4) above, the company is considering paying the 61 store manager a $3 commission on each shirt sold in excess of the break-even point. If this change is 62 made, what will be the store's operating income or loss if 23,500 shirts 63 are sold in a year? 64 65 66 67 68 69 70 72 73 Operating income (loss) 74 75
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