1. Hallstead is expecting all selling expenses except commissions to increase by 3% in 2007. COGS per ticket and commission per ticket, on the other hand, is expected to remain the same as 2006. If Hallstead do not increase the price (sales per ticket) in the upcoming year, what is the new break-even point for the # of tickets sold 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