Question

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:

cch Problems i Selling price Per Shirt $ 47 Variable expenses: Invoice cost Sales commission $ $ 20 7 Total variable expenses $ 27 Annual Fixed expenses: Rent 100,000 $ 160,000 Advertising 60,000 Salaries Total fixed expenses 320,000 $ The company has asked you, as a member of its planning grc < Prey

Answer 1

PAGE NO DATE 1 47 20 Selling Price Variable Enp Invoice Cost Total Variable Ext Sales Commission Total variable Emp Contribution pershirt fined Expenses: Rent Advertising Salaries Total 7 (2) 20 סססססן 160 UUD 60 OUD 320 000 Break Even Point in Unit Sales = Total fined Eralp Contribution =$320010 $20 - 16000 units Break Even Point in Dollar sales (6000 x 47 152000 OA Shot on OnePlus By Raaghav

Porno DATT पन Selling Price Variable Ext: Invoice cost Total Variable Exp contribution 27 Fired Expenses: Rent Advertising salaries boos +85000) Total Fined Euf: 100 DO 160 00 14 SOLD 105000 Break Even Point in Qnit sale Uosto 21 = 1500 whits Break Even point in & = IS BD x 41 10500D = $105.00 OA Shot on OnePlus By Raaghav

NENO 6 3) Operating Income / wees if 14000 shirts are sold Particulars sales (14000 x ut (-) Total Variable Exp [14000 x 27] (378000) - Total fined Eup! Amount 658DUD (3 20000 MOODO Emp 47 Variable Invoice Cost 20 sales Commission 7 Store Manager Commission y Total Variable Exp (31) Contribution per shirt 16 Totul Tined Exp 320000 Ba New Break Even Point in Unitsales = 320000 16 = 2000 o units = 2000 X 41 Break Even point in & sales = $940000 OA Shot on OnePlus By Raaghav