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Stylish Sitting is a retailer of office chairs located in San Francisco, California. Due to increased market competition, the CFO of Stylish Sitting has grown worried about the firm's upcoming income stream. The CFO asked you to use the company financial information provided below.
Sales price$72.00
Per-unit variable costs:
Invoice cost 40.05
Sales commissions 17.05
Total per-unit variable costs$57.10
Total annual fixed costs:
Advertising$54,100
Rent 76,200
Salaries 224,200
Total annual fixed costs$354,500
Question 1: The annual breakeven point, in dollar sales, is: (Do not round intermediate calculations.)
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