Instructions: Sun Sports Inc. has several kiosks in large and medium-sized shopping centers that They sell various styles of sports hats for men and women, all at the same price. In addition to the regular salary, the company pays a good commission to its salespeople so that they Take care and be proactive in sales. The following cost and sales price information is representative of each of the kiosks individually.

	Data by cap
Sale price	$42
Variable costs
Cost per hat	$16
Sales commission	$1.50
Total variable cost	$17.50
	Annual cost
Fixed costs Salaries	$39,000
Kiosk rental	$23,000
Advertising	$56,000
Total fixed costs	$118,000

The company wants to review its policies and provide additional incentives to strengthen sales. Provide management with the following analysis of their stores: 1. Calculate the break-even point in units and sales dollars of a kiosk.

2. present a cost-volume-profit graph showing the revenues and costs of a kiosk from 0 to 30,000 caps and the break-even point.

3. Presents the net operating results (net profit or loss) if 9,000 are sold hats a year.

4. The company is evaluating the possibility of offering a commission of $1.50 per hat sold to the kiosk supervisor (in addition to the sales commissions paid to the sellers at the kiosk). Determine the new break-even point in sales dollars and units sold if this commission is added.

5. Instead of the previous $1.50 commission per hat sold, another alternative to company wants to evaluate is to offer the supervisor only $1.50 for each hat sold in excess of the equilibrium point. If only this commission is applied, what would be the net operating result (net profit or loss) if 12,000 hats are sold per year? 6. Another third alternative, instead of the previous ones, is to completely eliminate the sales commissions and increase fixed salaries by an additional $22,000 annually. a. Presents the break-even point in dollars and sales units for this alternative. b. Explain whether or not you would recommend this alternative and why.

You must present the answer to the exercise completely and with the entire process to perform the calculations.