Browns' Company sells ten different styles of relatively inexpensive football jerseys with identical purchase
Browns' Company sells ten different styles of relatively inexpensive football jerseys with identical purchase costs and selling prices. Brown is trying to determine the desirability of opening another store, which would have the following expense and revenue relationships (variable data on a per unit basis, fixed expenses in total):
Variable data: Selling Price $40.00; Cost of Shirt $18.00; Sales Commissions $7.00
Annual fixed expenses: Rent$80,000; Salaries $150,000; Other fixed expenses $70,000
Required:
1. What is the annual breakeven point in dollar sales and units?
2. If Brown has an effective tax rate of 40%, how many jerseys must they sell to make $80,000 after taxes? continued
3. Ignoring income taxes, If 21,000 jerseys are sold, what would be the stores operating income (loss)?
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Answers
Status NEW
Posted 31 May 2017 08:05 AM
My Price 8.00
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Attachments
file 1496219324-Answer.docx preview (354 words )
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