Garner Stores, Inc. is a multiple-store chain retailer of women's clothing. You are provided with the following budgeted income statement for the coming year.

GARNER STORES, INC.
Budgeted Income Statement For the Year Ending June 30, 2016 ($000 omitted)
Sales				$34,000
Cost of goods sold
Variable		$10,200
Fixed		3,250		13,450
Gross profit				$20,550
Selling and administrative costs
Commissions		$5,440
Fixed advertising cost		3,400
Fixed marketing salaries		500
Fixed administrative cost		6,500		15,840
Operating income				$4,710
Income taxes (@ 30 percent)				1,413
After-tax income				$3,297

Required:
1. Determine the breakeven point in dollars for 2016.
2. What is the required sales dollars if desired profit is to increase by 10% over the budgeted pre-tax profit?
3. What is the indifference point between reducing the commissions to 10% of sales dollars, and at the same time increasing total fixed cost per year by $2.4 million, relative to the current budget?