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Define cvp analysis

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Reference no: EM13488923

CVP analysis, shoe stores. The WalkRite Shoe Company operates a chain of shoe stores that sell 10 different styles of inexpensive men's shoes with identical unit costs and selling prices. A unit is defined as a pair of shoes. Each store has a store manager who is paid a fixed salary. Individual salespeople receive a fixed salary and a sales commission. WalkRite is considering opening another store that is expected to have the revenue and cost relationships shown here:

1 Unit Variable Data (per pair of shoes)
Annual Fixed Costs

2 Selling Price $30.00
Rent $60,000
3 Cost of shoes $19.50
Salaries 200,000
4 Sales commission $1.50
Advertising 80,000
5 Variable cost per unit $21.00
Other fixed costs 20,000
6




Total fixed costs $360,000

Reference no: EM13488923

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