Problemi Cool Shoes operates a chain of stores that sell 10 different styles of cool...
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Problemi Cool Shoes operates a chain of stores that sell 10 different styles of cool shoes with identical unit costs and selling prices. A unit is defined as a pale of cool shoes Tachste has a store manager who is paid a fixed salary. Individual salespeople receive a fixed salary and a sales commission Col Shoes is considering opening whether store that is expected to have the revenue and cost relationships shown here Unit Variable Data (per pair of cool Selling Price $ 240,00 Annual Fixed Costs Rent Salaries Advertising Total Fixed Costs $ 17,500.00 $ 150.00 $ 200,000.00 $367 SO 000 Cost of Shoes Sales Commission Total Variable Costs $ 85.00 $ 0.00 $ 115,00 REQUIRED (consider each requirement independently) 1. What is the annual breakeven point in (a) units sold and (b) revenues? 2. What would net income be for the new store if it sells 5.000 pairs of cool shoes in its first year of operation? 3. What would the new breakeven point be in (a) units sold and (b) revenues if the store eliminates sales commissions and instead gives every employee a raise
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