1) Original Break-even calculations Sales (total number of shoes sold in a month x selling price each shoe) 100,000 1000 Units x $100) Variable costs (40%) 40,000 Contribution margin 60,000 Sales - Variable costs) (1000 Units - $40,000) Fixed costs - given 35,000 Operating income 25,000 Contribution margin - fixed cost) (60,000-$35,000) 583.33 Break-even point (fixed costs / variable costs per unit) = ($35,000/($100-$40)=$35,000/$60Sales New Sales (new sales volume X selling price of each shoe) $150,000 (1500 Units x $100) ((50% x 1,000) + 1,000) x $100 50% x 1000:500+1000=15,000x$100 63,000 Variable costs (original 40% + $21'pair): 40+ $2 : 0.42 x 100 (Selling price X new variable costx'pair) Contribution margin 87,000 (Sales Variable Costs) 150,000 Units-$63,000 Fixed costs (original fixed costs + additional marketing cost) $36,500 ( 35,000 + 1,500) Operating income (Contribution margin fixed cost) 8?,000- $36,500 51,500 Break-even point (fixed costs 1' variable costs per unit) : 36,500 - (100- 63000) 629