EXERCISE 6-17 (30 MINUTES)

6. The new variable expenses will be $13.50 per pair.

Sales = Variable expenses + Fixed expenses + Profits

$30.00Q = $13.50Q + $181,500 + $0

$16.50Q = $181,500

Q = $181,500 ÷ $16.50 per pair

Q = 11,000 pairs