1. Break-Even ( 20 points) Harriot has recently opened Twin-Tees, a store specializing in fashionable T-Shirts. She just completed a course in managerial accounting and has gathered the following information to aid in her decision making: Sales price per T-Shirt Variable expense per shirt $5.00 1.80 Fixed expenses per year: Building rental Equipment depreciation Selling Administrative $12,000 3,000 30,000 15,000 $60,000 1. How many T-Shirts must be sold to break even? (5) 2. How many units would she have to sell to earn a $6,400 profit? - _(5) 3. Harriot now has one part-time salesperson working in the store. She is considering converting the part-time position to a full-time position. She believes that the change would bring in an additional $20,000 in sales each year. What is the maximum amount she could increase the sales person's salary and still justify the change in strategy? _