obo Magy has recently opened The Sandal Shop in Silicon Oasis a store that specializes in fashivrate and Magy has just received a degree in business from HEMSU and she is anxious to apoly the protestean learned to her business. In time, she hopes to open a chain of sandal shops. As a fina step toetus prepared the following analysis for her new store.contribution margin per pair of Sandals S2 Varalie expenses per pair of sandals $16. Fixed expenses per year include Bulding rental $15.080, Roupon. depreciation 7,000; Selling expenses 20,000; Administrative expenses 18,000 Required: 1. How many pairs of sandals must be sold each year to break even? What does this repteert in total sales dollars? 2. Magy has decided that she must earn at least 518,000 the first year 10 jutty her time and effort. How many pairs of sandals must be sold to reach this target proiz 3. Calculate the margin of safety assuming that budgeted sales is 5108,000 from selling 2.700 pues et sandals 4. Assume that Magy finds a new supplier with a higher purchase price for high quality raw materials that would be used in production. What is the effect on the breakeven point) 5. Assume that there are two companies X and Y that are identical in all respects except that costs of company X are mostly variable while the costs of compy Y are mostly fixed. When sales increase which company will tend to realize the greatest increase in profits? Why? Answer 1 A BI 50 $ 41 24 W F IE