How has the breakeven point in number of sales tickets (number of customer orders written) and breakeven in sales dollars changed from 2003, to 2004, and to 2006? How has the margin of safety changed? What caused the changes? 2. One idea that the consultant had was to reduce prices to bring in more customers. If average prices were reduced ten percent (10%), and the number of sales tickets (unit sales) increased to 7,500, would the company's income be increased? With prices reduced, what would be the new breakeven point in sales tickets and sales dollars?

5.How much would the average sales ticket have to increase to breakeven if the fixed cost remained the same in 2007 as it was in 2006? 6. What do you recommend that the managers at Hallstead Jewelers do?plz write down the calculate steps

Exhibit 2 Hallstead Jewelers Operating Statistics 2003 2004 2006 Sales space (square feet) Sales per square foot Sales tickets Average sales ticket 10,230 $ 839 5,341 $ 1,607 10,230 $ 792 5,316 $ 1,524 15,280 $ 701 6,897 $ 1,553 Source: Casewriter Exhibit 1 Hallstead Jewelers; Income Statements for Years Ended January 31 (thousands of dollars) 2003 2004 2006 Sales $8,583 4,326 $4,257 $8,102 4,132 $3,970 $10,711 5,570 $ 5,141 3,215 2,021 429 2,081 405 536 Cost of goods sold Gross margin Expenses Selling expense Salaries Commissions Advertising Administrative expenses Rent Depreciation Miscellaneous expenses Total expenses Net income 254 250 257 418 425 435 420 420 840 84 84 142 122 53 $3,679 $ 578 93 $3,758 $ 212 $ 5,547 $ (406)