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Profit Graph Profit Sales Volume in Units 2. Prepare a CVP graph or a profit graph for the store from zero pairs up to 4,000 pairs of sandals sold each year. Indicate the breakeven point on your graph. Note: Use the line tool to draw a single line (Total Sales, Fixed Expense, Total Expense, Profit). This line should only contain the two endpoints. Use the point tool (Break Even Point) to plot the Break Even Point. For your graph to grade correctly, you must enter the exact x and y coordinates for each endpoint. Once all points have been plotted, click on the line (not individual points) and a tool icon will pop up. You can use this to enter exact co-ordinates for your points as needed. To remove a line/point from the graph, click on the line/point and select delete option. [The following information applies to the questions displayed below.] Angie Silva recently opened The Sandal Shop in Brisbane, Australia, a store specializing in fashionable sandals. In time, she hopes to open a chain of sandal shops. As a first step, she gathered the following data for her new store: Required: 5. Refer to the original data. During the first year, the store sold only 3,000 pairs of sandals and reported the following operating results: a. What is the store's degree of operating leverage? b. Angie is confident a more intense sales effort and with a more creative advertising program will increase unit sales by 50% next year. Using the degree of operating leverage, what would be the expected percentage increase in net operating income if Angie is able to increase unit sales by 50% ? Required: 3. Angie has decided that she must earn a profit of $18,000 the first year to justify her time and effort. How many pairs of sandals must be sold to attain this target profit? Profit Graph Profit Sales Volume in Units 2. Prepare a CVP graph or a profit graph for the store from zero pairs up to 4,000 pairs of sandals sold each year. Indicate the breakeven point on your graph. Note: Use the line tool to draw a single line (Total Sales, Fixed Expense, Total Expense, Profit). This line should only contain the two endpoints. Use the point tool (Break Even Point) to plot the Break Even Point. For your graph to grade correctly, you must enter the exact x and y coordinates for each endpoint. Once all points have been plotted, click on the line (not individual points) and a tool icon will pop up. You can use this to enter exact co-ordinates for your points as needed. To remove a line/point from the graph, click on the line/point and select delete option. [The following information applies to the questions displayed below.] Angie Silva recently opened The Sandal Shop in Brisbane, Australia, a store specializing in fashionable sandals. In time, she hopes to open a chain of sandal shops. As a first step, she gathered the following data for her new store: Required: 5. Refer to the original data. During the first year, the store sold only 3,000 pairs of sandals and reported the following operating results: a. What is the store's degree of operating leverage? b. Angie is confident a more intense sales effort and with a more creative advertising program will increase unit sales by 50% next year. Using the degree of operating leverage, what would be the expected percentage increase in net operating income if Angie is able to increase unit sales by 50% ? Required: 3. Angie has decided that she must earn a profit of $18,000 the first year to justify her time and effort. How many pairs of sandals must be sold to attain this target profit

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