Question

Required information The following information applies to the questions displayed below.) 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 sales commission on each pair of shoes sold plus a small buse salary The following data pertains to Shop 48 and is typical of the company's many outlets: Per Pair of Shoes $ 25.00 Selling price Variable expenses Invoice cost Sales commission Total variable expenses $ 10.50 $ 15.00 Annual Fixed expenses Advertising Rent Salaries Total fixed expenses 40.000 37,000 180,000 $ 252.000 3. If 25.400 pairs of shoes are sold in a year, what would b s net operating income (loss)?

Answer 1

Conpatation aphet operating incame CLOSS) Sales C25400x25) Less Vanable cost C25400x s) Contribution margin Lessifixed Epepse s Advertising 625060 381000 2S44000 रन०0० Rent 8a00o 5t000 C3600 Salaries Aletoperating loss)