Question

Splendid Glasses operates a kiosk at the local? mall, selling sunglasses for $ 20 each.Splendid Glasses currently pays ?$1,920 a month to rent the space and pays two? full-time employees to each work 110 hours a month at $8 per hour. The store shares a manager with a neighboring kiosk and pays? 50% of the? manager's annual salary of $ 43,000 and benefits of $8,600. The wholesale cost of the sunglasses to the company is $ 9 a pair.

Requirement 1. How many sunglasses does Splendid Glasses need to sell each month to break? even?

Select the formula? labels, enter the amounts and calculate the breakeven number of sunglasses per month.

Requirement 2. If Splendid Glasses wants to earn an operating income of $ 605 per? month, how many sunglasses does the store need to? sell?

Select the formula? labels, enter the amounts and calculate the number of sunglasses required to be sold to reach a target operating income of $ 605. ?(Round your answer up to the nearest whole? unit.)

Requirement 3. If the? store's hourly employees agreed to a 5?% ?sales-commission-only pay? structure, instead of their hourly? pay, how many sunglasses would Splendid Glasses need to sell to earn an operating income of $ 605??

Select the formula? labels, enter the amounts and calculate the number of sunglasses required to be sold to reach a target operating income of $ 605 if the? store's hourly employees agreed to a 5?% ?sales-commission-only pay? structure, instead of their hourly pay. ?(Round intermediary calculations to the nearest cent and your answer up to the nearest whole? unit.)

Requirement 4. Assume

SplendidSplendid

Glasses pays its employees hourly under the original pay? structure, but is able to pay the mall

77?%

of its monthly revenue instead of monthly rent. At what sales levels would

SplendidSplendid

Glasses prefer to pay a fixed amount of monthly? rent, and at what sales levels would it prefer to pay

77?%

of its monthly revenue as? rent? ?(Round intermediary calculations to the nearest cent and your answer up to the nearest whole? unit.)

For sales between 0 and		sunglasses, Splendid Glasses prefers to pay the 7% commission. For sales
than this number, the company prefers to pay the monthly rent of $1,920.

Answer 1