The following information applies to the questions displayed below.] angie silva has recently opened the sandal shop in brisbane, australia, a store that specializes in fashionable sandals. in time, she hopes to open a chain of sandal shops. as a first step, she has gathered the following data for her new store:
sales price per pair of sandals $ 40
variable expenses per pair of sandals 16
contribution margin per pair of sandals $ 24
fixed expenses per year: building rental $ 15,000
equipment depreciation 7,000
selling 20,000
administrative 18,000
total fixed expenses $ 60,000
how many pairs of sandals must of sold each year to break even? what does this represent in total sales dollars?
angie has decided that she must earn at least $18,000 the first year to justify her time and effort. how many pairs of sandals must be sold to reach this target profit?
angie now has two salespersons working in the store-- one full time and one part time. it will cost her an additional $8,000 per year to convert the part-time position to a full-time position. angie believes that the change would bring an additional $25,000 in sales each year. should she convert the position? use the incremental approach. (do not prepare an income statement)

answer; (d) i believe that the correct answer is ; /// a new invention lowers the cost of production;

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.