So the work right shoe company operates a chain of shoe stores That sells 10 different styles of inexpensive men's shoes with identical units, cost and selling price is now a unit is defined as a pair of shoes and it starts as a stop. It started, the store manager always paid a fixed salary. Individual sales people receive a fixed salary and sales commission, World crisis. Considering opening another store that is expected to have the revenue and cost relationships showed in the table below were given the unit available data, propel shoot and the annual fixed cost. So that's the answer the following questions. And I'll be honest, you know, one x 1. Now the first question is what is the animal break even points in units sold and also in revenues? So we're gonna start with animal break even points and we're gonna start with units and revenues. So we have annual break even points. So first of all the selling price power units, S P PI units is $30 from the from the table was done with subtract or less. The variable costs per unit. And the very because by units is $21. So let's start and then what we get with difference. And that would be the contribution margin by units. And that is $9 Right? Because 30 -21 is nine. So therefore the contribution imagine ratio the contribution imagine ratio. It's equal to the contribution margin divided by selling price. So therefore we're going to have $9 contribution margin is $9. Selling price is $30 So. So nine divided by 30 billion contribution margin ratio. And that would be that c percent. Now the first question which is the break even the in our break even point in units. So therefore the break even point in unit. Which is the first part of the question would be the total fixed cost divided by the contribution of merging per unit. So yeah, we're going to have The total fixed costs were giving the table is 360,000 And the contribution margin per unit is $9 that were given. So When we divide this hour, break even points in units would be 40,000 units. And the b part of the question says the break even point in revenue. So it's gonna be a similar way to find that. So break even a revenue will basically be the fixed cost divided by the contribution imagine ratio. And then this is the cost to 360,000 Divided by the contribution margin ratio is 30%, which we just found. So when divide these events have 1,200,000. And that will be the break even point in revenues. Sure. So the next question question too says If 35,000 units are sold. So we sell that 5000 units. What is the we'll be the stars operating income or loss. So the operating um, the operating income or loss is all we're going to find And we saw 35,000 units. So number of units Sewed is 35 1000 units. Rights. Right. So moving on the contribution imagine Pygmies that we found before. It's $9. And mind you CMS contribution. Imagine so we don't forget. So contribution margin per unit is $9. Then the total imagine nick total contribution imagine will be close to 35,000 basically multiply the number of units times the contribution margin per unit. So that 5000 units Multiplied by $9. And that will give you 315 $1,000. So I'm not going to last the fixed costs and Meiji fixed cost is $3.60,000. Right? So when we less this from these, you're going to have minus because 3 15,000 minus 3 16 we give you minus. So to remind us 45 thousands. So obviously this is not a profit. This is going to be a net loss. Right? Right. So this is the operating loss, not the operating income. So we have an operating loss of $45,000. We've been answering the next question. Um, it says if sales commissions are discontinued And fixed salaries are raised by total of $81,000, what would be the annual break even points in units sold and in revenues? So basically we're going to find that too. So, um, the sales commissions are just continue to fix salaries are raised by $81,000 to finally break even pointing you need. So I'm in revenues. So I was finding new big big evil points in essence, then you break evil point. So basically the revised the device fixed cost is equals to $360,000 Plus $81,000. Because the $81,000 comes from the fixed salaries that are raised by 81,000. So we have a race in fiscal in the fixed salary By 81,000. Right? So at that the revised fixed costs and will give To give us $4.41,000. And then the revised variable costs per unit. Okay to be $21 which was before -1.50 And then just give you $19.50. Now the revised contribution imagine B equals two Taxi dollars, I was minus 1950 right from here And then just give you $10 50 cents. Now the contribution imagine ratio Will be equals to $10.50 cents Divided by $30 and now which is right here and now this is going to give you 35%. So therefore answering the question by giving the new break even point in units. The break even in units will be closed to 44-1000 which is a revised fixed cost divided by $10.50. And this is where he came from the device contribution imagine. And this gave you 42 1000 units because it's in units right now the break even point which is a part of the question. The revenues we'll give you everybody I'm sorry mm We'll give you 441,000 which is the revised fixed costs Divided by 35%. And this will give you one million to $60,018. Now moving on to the 4th question, Okay. He says referred to the original data if in addition to is fixed salary. If an addition to his fixed salary, the store manager has paid a commission of 30 cents by units sold. What would be the annual break evil points in units and in units sold and revenues. So I have to find the additional sales commission. So now the revised contribution emerging We cost to $9 miners 0.5 cents On this give you 8.50 cents right? The revised contribution imagine ratio will be hosted 858.50 I was before divided by $30 and this will give you 28 points 33%. Yeah. So now asking the question the break even in you need to be closed to Yeah 3 60,000 divided by The 8.50 which is the revised contribution margin. And just to give you 42,000 3 55. Three 0.94. And then this is the units. Mhm. Now the break even point in revenues will be closed to 3 60,000 Divided by 28 points 33%. And this will give you one million to 70,000 5 88. And this is in dollars. So now moving on to the 5th question, the last final question. And this is Refer to the original data if an addition to South Africa salary the store manager has paid a commission of 30 cents per unit. So we are getting an additional commission of 30 cents per unit in excess of the breakdown minute points. What would be the stores operating income if 50,000 units were sold? So as to find the additional commission after a break even. So the contribution margin per unit up to break even is Is $9. And the contribution margin brian it's after break even Is $8.50. Right? So therefore the total contribution margin We cost to 40,000 units Multiplied by $9. Close 10,000 units multiplied by $8.50. And then If you add this together, this will give you 445 1000. So then we less fixed costs and fixed costs is 3 60,000 And then the operating income will be equals two. Yeah, the operating income really different and that will be $85,000. So as for the question, this will be the stores operating income of 50,000 minutes were sold. That's the answer to the entire question.