Let’s say you want to open a shoe store that will specialize in high-end shoes.But before you do, you want to determine how many pairs of shoes you have to sell in the first year to break even (have no profit or loss).You also want to know what your profit will be in year two.You have been busy estimating some revenues and costs.Here is what you have so far:
Cost (to you) per pair of shoes $80
Sales commission per pair of shoes $10
Managers’ Salaries $420,000
Miscellaneous fixed costs $24,000
Selling price per pair of shoes $160
-How much is the variable cost per unit?