MSM Company sells clothing for young adults. The firm has normal monthly fixed costs of $140,000 ( $58,000 of this amount is fixed salaries). The firm's variable cost ratio averages 60%. The firm operates 3 stores in the mid Atlantic region. 4. The firm is considering reducing monthly fixed salaries (currently $58,000 ) and using a combination salary and commission employee compensation plan. The reduction in fixed salaries would equal $12,000 monthly and be replaced with a 3% of gross sales commission payment. The 3% would be shared by all fixed salary employees. a. Calculate the new breakeven point in mionthly sales dollars. ANS: 1 b. Calculate the new level of monthly sales dollars needed to earn an operating profit of $18,000 monthly