1. Assume again that all selling expenses except commissions to increase by 3% in 2007. Instead of keeping the price unchanged, if Hallstead were to consider an increase in the price of the jewelry, how much must the price (sales per ticket) have to increase to break even if the number of tickets sold increases by 3% in 2007?

	2006
Sales	$10,711
Cost of goods sold	5,570
Gross margin	$5,141
Expenses
Selling expense
Salaries	3,215
Commissions	536
Advertising	257
Administrative expenses	435
Rent	840
Depreciation	142
Miscellaneous expenses	122
Total expenses	$5,547
Net income	$ (406)
Sales space (square feet)	15,280
Sales per square foot	$701
Sales tickets	6,897
Average sales ticket	$1,553