Question: ! Required information Problem 5-30 (Algo) Graphing; Incremental Analysis; Operating Leverage (L05-2, LO5-4, LO5-5, LO5-6, LO5-8] [The following information applies to the questions displayed below.)

 ! Required information Problem 5-30 (Algo) Graphing; Incremental Analysis; Operating Leverage(L05-2, LO5-4, LO5-5, LO5-6, LO5-8] [The following information applies to the questionsdisplayed below.) Angie Silva has recently opened The Sandal Shop in Brisbane,

! Required information Problem 5-30 (Algo) Graphing; Incremental Analysis; Operating Leverage (L05-2, LO5-4, LO5-5, LO5-6, LO5-8] [The following information applies to the questions displayed below.) Angie Silva has recently opened The Sandal Shop in Brisbane, Australia, a store that specializes in fashionable sandals. In time, she hopes to open a chain of sandal shops. As a first step, she has gathered the following data for her new store: $ 32 16 $ 16 Sales price per pair of sandals Variable expenses per pair of sandals Contribution margin per pair of sandals Fixed expenses per year: Building rental Equipment depreciation Selling Administrative Total fixed expenses $ 9,600 12,000 9,600 16,800 $ 48,000 Problem 5-30 (Algo) Part 1 Required: 1. What is the break-even point in unit sales and dollar sales? (Do not round intermediate calculations.) pairs Break-even point in unit sales Break-even point in dollar sales Required information Problem 5-30 (Algo) Graphing; Incremental Analysis; Operating Leverage (LO5-2, L05-4, LO5-5, LO5-6, LO5-8) [The following information applies to the questions displayed below.] Angie Silva has recently opened The Sandal Shop in Brisbane, Australia, a store that specializes in fashionable sandals. In time, she hopes to open a chain of sandal shops. As a first step, she has gathered the following data for her new store: $ 32 16 $ 16 Sales price per pair of sandals Variable expenses per pair of sandals Contribution margin per pair of sandals Fixed expenses per year: Building rental Equipment depreciation Selling Administrative Total fixed expenses $ 9,600 12,000 9,600 16,800 $ 48,000 Problem 5-30 (Algo) Part 3 3. Angie has decided that she must earn a profit of $16,000 the first year to justify her time and effort. How many pairs of sandals must be sold to attain this target profit? Unit sales to attain target profit pairs Required information Problem 5-30 (Algo) Graphing; Incremental Analysis; Operating Leverage (LO5-2, L05-4, LO5-5, LO5-6, LO5-8] [The following information applies to the questions displayed below.] Angie Silva has recently opened The Sandal Shop in Brisbane, Australia, a store that specializes in fashionable sandals. In time, she hopes to open a chain of sandal shops. As a first step, she has gathered the following data for her new store: $ 32 16 $ 16 Sales price per pair of sandals Variable expenses per pair of sandals Contribution margin per pair of sandals Fixed expenses per year: Building rental Equipment depreciation Selling Administrative Total fixed expenses $ 9,600 12,000 9,600 16,800 $ 48,000 Problem 5-30 (Algo) Part 4 4. Angie now has two salespersons working in the store-one full time and one part time. It will cost her an additional $7,000 per year to convert the part-time position to a full-time position. Angie believes that the change would increase annual sales by $41,600. Should she convert the position? Use the incremental approach. Multiple Choice O Yes O No

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