Cooking Stones Ltd buys various stoneware in kitchen direct from manufacturers and makes them into packs for sale. Salesmen are paid on a fixed wage plus commission basis. The following forecasts have been made for the coming year: Cost of kitchen stoneware Packing wages Salesmen's commission Variable cost per pack Selling price per pack Salaries Rent of premises Administrative expenses Total fixed cost $ per pack 5.90 0.50 0.60 7.00 8.50 $ 38,000 7,200 6,500 51,700 Required - On the assumption that all cost and revenue relationships would remain unchanged. except where specified: (a)Calculate the net profit or loss if: (i) 55,000 packs are sold but each salesman receives a commission of $0.60 per pack plus an additional $0.10 per pack for all units sold. over the break-even point (3 marks) (ii) 42,000 packs are sold with commission unchanged at $0.60 per pack - (1 mark) - (b)Calculate the break-even point in sales value and in packs if salesmen's commission is increased by $0.40 to $1.00 per pack. (2 marks) (c) If salesmen's commission is abolished and salaries are increased by $12,000- to $50,000 per year, calculate: > (i) the break-even point in sales value (2 marks) - (ii) the number of packs that must be sold to achieve a target profit of $42,000 (2 marks) -