Reference no: EM13488935

Refer to the original data. If, in addition to his fixed salary, the store manager is paid a commission of $0.30 per unit in excess of the breakeven point, what would be the store's operating income if 50,000 units were sold?

Total revenue = number of shoes sold * selling price

$1,500,000

Cost of shoes = number of shoes*cost of shoes per pair

$975,000

Sales commission if $.30 per pair*number of shoes sold

$15,000

Operating income
Revenue $1,500,000

Less:
Cost of shoes $975,000
Sales commission $15,000
Total fixed costs $360,000
Total cost $150,000
Operating income $1,350,000