How many sunglasses does classical glasses need to sell

Assignment Help Accounting Basics

Reference no: EM133369946

Questions:

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

2. If Classical Glasses wants to earn an operating income of $5,300 per month, how many sunglasses does the store need to sell? What is the firm's operating leverage?

3. If the store's hourly employees agreed to a 15% sales -commission-only pay strurture, instead of their hourly pay, how many sunglasses would Classical Glasses need to sell to earn an operating income of $5,300? What is the ?rm's operating leverage? Compare to question 2 and explain the differences.

4. Assume Classical Classes pays its employees hourly under the original pay structure, but is able to pay the mall 10% of its monthly revenue instead of monthly rent. At What sales levels would Classical Classes prefer to pay a fixed amount of monthly rent, and at What sales levels would it prefer to pay 10% of its monthly revenue as rent? Explain

Reference no: EM133369946

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