The Fancy Shoe company sells shoes for $125 each. Manufacturing cost is $53.40 per shoe; marketing costs are $21.35…

The Fancy Shoe company sells shoes for $125 each. Manufacturing cost is $53.40 per shoe; marketing costs are $21.35…

Question:

Don't use plagiarized sources. Get Your Custom Assignment on
The Fancy Shoe company sells shoes for $125 each. Manufacturing cost is $53.40 per shoe; marketing costs are $21.35…
From as Little as $13/Page

Transcribed Image Text:

The Fancy Shoe company sells shoes for $125 each. Manufacturing cost is $53.40 per shoe;
marketing costs are $21.35 per shoe; and royalty payments are 15% of the selling price. The fixed
cost of preparing the shoes is $398,000. Capacity is 30,000 shoes.
(A) Compute the break-even point
(i) in units;
(ii) in dollars;
(B) Determine the break-even point in units if fixed costs are increased by $5,300 while
manufacturing cost is reduced by $4.80 per shoe.
(C) In a new situation (ignore question 1(b)), determine the break-even point in units if the selling
price is increased by 12% while fixed costs are decreased by $3,900.

Expert Answer:

Answer rating: 100% (QA)

Selling price per shoe 125 Manufacturing cost 53 40 Marketing cost 21 35 Roya
View the full answer