Required: 1. How many pairs of stockings must be sod to break even? What does this represent it Iota dollar sales? (Round “per unit” values to 2 decimal places and final answers to the nearest whole number. Do not round other intermediate calculations. Omit the “S” sign in your response.)

Break even point in unit sales Break even point in dollar sales

1 pairs

3. How many pairs of stockings must be sod to earn a S8.000 target profit for the first year? (Round the cost per unit to 2 decimal places and final answer to the nearest whole number. Do not round other intermediate calculations.)

Unit sales to attain target profit pairs

4. Ms. Hall now has one full time and one part time salesperson working in the store. It will cost her an additional 513.200 per year to convert the part time position to a full time position. Ms. Hal believes that the change would bring in an additional S29.000 in sales each year. Should she convert the position? Use the incremental approach.

No Yes

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