4.44 ** CVP, alternative cost structures Objectives 1, 2, 6 Classical Glasses operates a kiosk at the local shopping centre, selling sunglasses for $60 each. Classical Glasses currently pays $2000 a month to rent the space and pays two full-time employees to each work 160 hours a month at $20 per hour. The store shares a manager with a neighbouring kiosk, and pays 50% of the manager's annual salary of $60000 and also 50% of the entitlements, which equal 20% of the manager's salary. The wholesale cost of the sunglasses to the company is $20 a pair. Required 1. How many sunglasses does Classical Glasses need to sell each month to break even? 2. If Classical Glasses wants to earn an operating income of $5400 per month, how many sunglasses does the store need to sell? 3. If the store's hourly employees agreed to a 15% sales-commission-only pay structure instead of their hourly pay, how many sunglasses would Classical Glasses need to sell to earn an operating income of $5400? 4. Assume that Classical Glasses pays its employees hourly under the original pay structure, but is able to pay the mall 10% of its monthly revenue instead of monthly rent. At what sales levels would Classical Glasses prefer to pay a fixed amount of monthly rent, and at what sales levels would it prefer to pay 10% of its monthly revenue as rent