Classical Glasses2 Classical Glasses operates a kiosk at the local mall, selling sunglasses for S30 each. Classical Glasses currently pays $1,000 a month to rent the space and pays two full-time employees to each work 160 hours a month at $10 per hour. The store shares a manager with a neighboring kiosk and pays 50% of the manager's annual salary of $60,000 and benefits of $12,000. The wholesale cost of the sunglasses to the company is $10 a pair Answer the following questions. Show your workings clearly 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 S5,300 per month, how many sunglasses does the store need to sell? What is the firm's operating leverage? 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 $5,300? What is the firm's operating leverage? Compare to question 2 and explain the differences. 4. Assume 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? Explain