Question: number 5 please with cell reference A1 The Tops national chain of shirt stores carry many styles of shirts that are all sold at the


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 Operating income (loss) 7 55. Refer to the original data. The company is considering eliminating sales commissions entirely in its stores and increasing fixed salaries by $107,000 annually. #8 If this change is made, what will be the new break-even point in dollar sales and in unit sales in the Bradbury store? 79 80 81 Breakeven Point in Sales - 82 Breakeven Point in Unit Sales = 83 84 85 86 87 88 89 90 91 92 93 94
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