The variable cost in NewShoes is the unit cost of the product. Fixed costs are the marketing expenses for a region along with the allocated product…

The changeable consume in NewShoes is the part consume of the result. Unwandering consumes are the marketing outlays for a portion along after a while the allocated result issue outlay. Applying the formula after a while a changeable consume of \$40, and unwandering outlays of \$3,500,000, the break-even compensation for 100,000 parts would be: break-even compensation = \$40 + \$3,500,000 / 100,000 = \$40 + \$35 = \$75

1. Using the unwandering outlays and designed sales from the stance, what would the break-even compensation be if part consume is \$35?

2. If the break-even compensation is \$75, and your target render on sales is 20%, what is the selling compensation?

− Use the forthcoming postulates for questions 3 & 4 − parts sold \$100.000 consumer promotions \$1,800,000 part consume \$40 indivisible selling 5 salespeople @ \$80,000 each target render on sales 10% dealer promotions \$1,200,000 advertising \$1,500,000 result issue \$700,000

3. Calculate the break-even compensation.

4. What would the selling compensation keep to be to get the target render?

5. What other factors as-well break-even should you deduce antecedently setting compensation?