Cardinal Coop would like to open a shorts business, in which she sells one type of shorts. She will pay her sales personnel a sales commission for each pair of shorts sold, and also a small base salary. The data below contains forecast cost and revenue data for her business. These data are typical of the company's many outlets: Selling price of one pair of shorts Projected pair of shorts that will be sold Variable costs per pair of shorts: Cost of shorts Sales commission Fixed costs annually: Rent Advertising Salaries $40 21,000 $18 $7 $80,000 $150,000 $70,000 Required (each of the situations below are independent of one-another, and are based on the original information above): 1. Calculate the annual break-even point in pair of shorts and dollar sales. 2. Prepare a CVP income statement for 21,000 pair of shorts sold. 3. Determine the number of pair of shorts to sell to earn a profit of $35,000. 4. If 19,000 pair of shorts are sold in a year, what would be the profit or loss? 5. Cardinal is also considering eliminating sales commissions entirely and increasing fixed salaries by $107,000 annually. She projects that this will result in 22,000 pair of shorts being sold. If this change is made, what will be the new operating income or loss? 6. Cardinal is considering a new fabric and design for the shorts. This will increase the cost per pair of shorts to $23, and rent will increase by $6,000 annually. She would also like to increase advertising to $190,000. She will sell the shorts for $42 per pair. She anticipates that this new fabric and design will increase shorts sales to 30,000 pair of shorts. If these changes are made, what ill be the new operating income or loss