Question: Problem 5-19B Basic CVP Analysis; Graphing LO5-1, LO5-4, LO5-5] Threads Unlimited operates a chain of shirt stores that carry many styles of shirts that are
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Problem 5-19B Basic CVP Analysis; Graphing LO5-1, LO5-4, LO5-5] Threads Unlimited operates a chain of shirt stores that carry many styles of shirts that are all sold at the same price. To encourage sales personnel to be aggressive in their sales efforts, the company pays a substantial sales commission on each shirt sold. Sales personnel also receive a small basic salary The following worksheet contains cost and revenue data for Store 45. These data are typical of the company's many outlets Per Shirt Selling price Variable expenses Invoice cost Sales commission Total variable expenses $24 Annual Fixed expenses Rent Advertising Salaries $80,000 180,000 60,000 Total fixed expenses $320,000 The company has asked you, as a member of its planning group, to assist in some basic analysis of its stores and company policies
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