The
Fashion Shoe Company operates a chain of women’s shoe shops that carry
many styles of shoes that are all sold at the same price. Sales
personnel in the shops are paid a substantial commission on each pair of
shoes sold (in addition to a small base salary) in order to encourage
them to be aggressive in their sales efforts.
The following worksheet contains cost and revenue data for Shop 48 and is typical of the company’s many outlets:
| Required: | |
| 1. |
Calculate the annual break-even point in unit sales and in dollar sales for Shop 48.
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Answer
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