Requlred Information

Problem $5-30($Algo$)$ Graphing; Incremental Analysis; Operating Leverage $[$LO$5-3,$ LO$5-4,$ LO$5-6,$ LO$5-$

$7,[05-8]$

$[$The following information applies to the questions displayed below.$]$

Angie Silva recently opened The Sandal Shop in Brisbane, Australia, a store specializing in fashionable sandals. In

time, she hopes to open a chain of sandal shops. As a first step, she gathered the following data for her new store:

Problem $5-30($Algo$)$ Part $4$

Requlred:

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 the change would increase annual sales by $$22,400.$

Should she convert the position? Use the incremental approach.

Multiple Cholce

Yes

No