document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1195120>Question 1195120</A>: <I><SPAN STYLE=\"word-break: break-all;\"> The Paduka Shoe Company sells five different styles of ladies chappals with identical costs and<BR>\n" );
document.write( "selling prices. The company is trying to find out the profitability of opening another store, which<BR>\n" );
document.write( "will have the following expenses and revenues:<BR>\n" );
document.write( "Per pair<BR>\n" );
document.write( "Selling price Tk. 30.00<BR>\n" );
document.write( "Variable cost Tk. 19.50<BR>\n" );
document.write( "Salesmen’s commission Tk. 1.50<BR>\n" );
document.write( "Total Variable cost Tk. 21.00<BR>\n" );
document.write( "Annual fixed expenses are:<BR>\n" );
document.write( "Rent Tk. 60,000<BR>\n" );
document.write( "Salaries Tk. 2,00,000<BR>\n" );
document.write( "Advertising Tk. 80,000<BR>\n" );
document.write( "Other fixed expenses Tk. 20,000<BR>\n" );
document.write( "Tk. 3,60,000<BR>\n" );
document.write( "a. Calculate the annual Break-Even point in units and in value. Also determine the profit or<BR>\n" );
document.write( "loss if 35,000 pairs of chappals are sold.<BR>\n" );
document.write( "b. The sales commissions are proposed to be discontinued, but instead a fixed amount of<BR>\n" );
document.write( "Tk. 90,000 is to be incurred in fixed salaries. A reduction in selling price of 5% is also<BR>\n" );
document.write( "proposed. What will be the Break-Even points in units?<BR>\n" );
document.write( "c. It is proposed to pay the store manager 50 paisa per unit as further commission. Selling<BR>\n" );
document.write( "price is proposed to be increased by 5%. What would be the Break-Even points in units?<BR>\n" );
document.write( "d. Refer to the original data if the store manager were to be paid 30 paisa commission on<BR>\n" );
document.write( "each pair of chappal sold in excess of Break-Even point, what would be the store’s net<BR>\n" );
document.write( "profit, if 50,000 were sold? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #827504 by </B><A HREF=/tutors/aboutme.mpl?userid=ikleyn><B>ikleyn(52799)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=ikleyn><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=ikleyn><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=827504\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> .\r<BR>\n" );
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document.write( "D U P L I C A T E \r<BR>\n" );
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document.write( "It was just answered once at this forum yesterday . . . \r<BR>\n" );
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