This paper circulates around the core theme of (Break-even point operating leverage) Footwear Inc. manufactures a complete line of mens and womens dress shoes for independent merchant. The average selling price of its finished product is $90 per pair. The variable cost for this same pair of shoes is $ together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
(Break-even point operating leverage) Footwear Inc. manufactures a complete line
of mens and womens dress shoes for independent merchant. The average selling price of its
finished product is $90 per pair. The variable cost for this same pair of shoes is $60. Footwear
Inc. incurs fixed costs of $160,000 per year.
a. What is the break-even point in pairs of shoes for the company?
b. What is the dollar sales volume the firm must achieve to reach the break-even point?
c. What would be the firms profit or loss at the following units of production sold:
4,000 pairs of shoes? 11,000 pairs of shoes? 18,000 pairs of shoes?
