Angie Silva has recently opened The Sandal Shop in Brisbane, Australia, a store that specializes in fashionable sandals. In time, she hopes to open a chain of sandal shops. As a first step, she has gathered the following data for her new store: Sales price per pair of sandals $ 30 Variable expenses per pair of sandals 15 Contribution margin per pair of sandals $ 15 Fixed expenses per year: Building rental $ 11,300 Equipment depreciation 11,300 Selling 9,000 Administrative 13,400 Total fixed expenses $ 45,000 1. What is the break-even point in unit sales and dollar sales? (Do not round intermediate calculations.)
Angie Silva has recently opened The Sandal Shop in Brisbane, Australia, a store that specializes in fashionable sandals. In time, she hopes to open a chain of sandal shops. As a first step, she has gathered the following data for her new store: Sales price per pair of sandals $ 30 Variable expenses per pair of sandals 15 Contribution margin per pair of sandals $ 15 Fixed expenses per year: Building rental $ 11,300 Equipment depreciation 11,300 Selling 9,000 Administrative 13,400 Total fixed expenses $ 45,000 1. What is the break-even point in unit sales and dollar sales? (Do not round intermediate calculations.)
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
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Angie Silva has recently opened The Sandal Shop in Brisbane, Australia, a store that specializes in fashionable sandals. In time, she hopes to open a chain of sandal shops. As a first step, she has gathered the following data for her new store:
Sales price per pair of sandals | $ 30 |
---|---|
Variable expenses per pair of sandals | 15 |
Contribution margin per pair of sandals | $ 15 |
Fixed expenses per year: | |
Building rental | $ 11,300 |
Equipment depreciation | 11,300 |
Selling | 9,000 |
Administrative | 13,400 |
Total fixed expenses | $ 45,000 |
1. What is the break-even point in unit sales and dollar sales? (Do not round intermediate calculations.)
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