Cost Assignment 1.docx - Beta company sells blouses in Washington USA Blouses are imported from Pakistan and are sold to customers in Washington at a

Cost Assignment 1.docx - Beta company sells blouses in...

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Beta company sells blouses in Washington, USA. Blouses are imported from Pakistan and are sold to customers in Washington at a profit. Salespersons are paid basic salary plus a decent commission of $14 on each sale made by them. Selling price and expense data is given below: Required: 1. Compute the break-even point in units and in dollars using the information given above. 2.What would be net operating income or loss if company sells 18,500 blouses in a year? 3.If the manage is paid a commission of $6 blouse (in addition to the salesperson’s commission), what will be the effect on company’s break-even point? 4. As an alternative to (3) above, company is thinking to pay $6 commission to manager on each blouse sold in excess of break-even point. What will be the effect of these changes on the net operating income or loss of the Beta company if 23,500 blouses are sold in a year? 5.Refer to the original data. What will be the break-even point of the company if
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  • Fall '17
  • John
  • Sales, Expense, Operating expense

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