Question

The XYZ Itd. operates a chain of shoe stores. The stores sell 10 different styles of men's shoes
with identical purchase cost and selling prices. The company is trying to determine the
desirability of opening another store which would have the following expense and revenue
relationship per pair.
Variable data
Selling price Rs 30.00
Cost of shoes' Rs 19.50
Salesman Commission Rs 1.50
Total Variable expenses Rs 21.00
Annual Fixed expenses
Rent Rs 60,000
Salaries Rs 2,00,000
Advertising Rs 80,000
Other fixed expenses Rs 20,000
Total Fixed cost Rs 3,60,000 FT
Enter your answer​

Answer 1

Explanation:

identical purchase cost and selling prices. The company is trying to determine the

desirability of opening another store which would have the following expense and revenue

relationship per pair.

Variable data

Selling price Rs 30.00

Cost of shoes' Rs 19.50

Salesman Commission Rs 1.50

Total Variable expenses Rs 21.00

Annual Fixed expenses

Rent Rs 60,000

Salaries Rs 2,00,000

Advertising Rs 80,000

Other fixed expenses Rs 20,000

Total Fixed cost 5930

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