1. Betty DeRose has recently opened The Sandal Shop, a store that specializes in fashionable sandals. Betty has just received a degree in business and she is anxious to apply the principles she has learned to her business. In time, she hope to open a chain of sandal shops. As a first step, she has prepared the following analysis for her new store: Selling price per pair of sandals Variable costs per pair of sandals Fixed expenses per year REQUIRED: $40 $16 $60,000 (1) How many pairs of sandals must be sold each year to break-even? How much does this represent in total sales dollars? (2) Betty has decided that she must earn at least $18,000 the first year in order to justify her time and effort. How many pairs of sandals must be sold to reach this target profit?