Angie Silva has recently opened The Sandal Shop in Brisbane, Australia, a store that specializes in fashionable sandals. Angie has just received a degree in business and she is anxious to apply the principles she has learned to her business. In time, she hopes to open a chain of sandal shops. As a first step, she has prepared the following analysis for her new store:

Sales price per pair of sandals $ 2.00
Variable expenses per pair of sandals 1.20
Contribution margin per pair of sandals $ 0.80
Fixed expenses per year:
Building rental $ 9,000
Equipment depreciation 5,000
Selling 17,600
Administrative 18,000
Total fixed expenses $ 49,600

Required:

1. How many pairs of sandals must be sold each year to break even? What does this represent in total dollar sales?

Break-even point in unit sales pairs
Break-even point in dollar sales

Ithink the most approximate answer would be b.i hope it you!

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