Help Save & Exit Subn Problem 5-26 CVP Applications; Break-Even Analysis; Graphing (LO5-1, LO5-2, LO5-4, LO5-5) [The following information applies to the questions displayed below.] 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 $ 30.00 Selling price Variable expenses Invoice cost Sales commission Total variable expenses $ $ 9.50 5.50 15.00 Annual Fixed expenses: Advertising Rent Salaries Total fixed expenses $ 36,000 23,000 130,000 $ 189,000 Problem 5-26 Part 1 Required: 1. What is Shop 48's annual break-even point in unit sales and dollar sales? (Do not round intermediate calculations.) Break-even point in unit sales Break-even point in dollar sales 12,600 pairs 397,890 $ Help Save & Exit Submit Problem 5-26 CVP Applications; Break-Even Analysis; Graphing (LO5-1, LO5-2, LO5-4, LO5-5) [The following information applies to the questions displayed below. 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 Variable expenses Invoice cost Sales commission Total variable expenses $ 30.00 29 $ $ 9.50 5.50 15.00 Annual Fixed expenses : Advertising Rent Salaries Total fixed expenses $ 36,000 23,000 130,000 $ 189,000 Problem 5-26 Part 3 3. If 12,100 pairs of shoes are sold in a year, what would be Shop 48's net operating income (loss)? Problem 5-26 Part 4 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.) pairs New break-even point in unit sales New break-even point in dollar sales Problem 5-26 Part 5 5. Refer to the original data. As an alternative to (4) above, the company is considering paying the Shop 48 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 Shop 48's net operating income (loss) If 15,700 pairs of shoes are sold? (Do not round intermediate calculations.)