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

number 5 please with cell reference  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 same A B 1 The Tops national chain of shirt

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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