Open-ended Problem. Clothing Boutique Corporation. You must upload and submit a file for this question before time is up.

The Clothing Boutique Corporation runs a group of stores that carry many styles of shoes that all sell at the same price. Sales personnel in the stores are paid a sales commission on each pair of shoes sold plus a small base salary.

The following information relates to the New Store. It has been operating for a few years now, and it is typical of the companys many outlets:

		Per Pair of Shoes
Selling price		$	20.00
Variable expenses:
Invoice cost		$	4.50
Sales commission			5.50
Total variable expenses		$	10.00
Annual Fixed expenses:
Advertising		$	43,000
Rent			30,000
Salaries			150,000
Total fixed expenses		$	223,000

Required:

Part 1. What is New Store's annual break-even point in unit sales and dollar sales? (Do not round intermediate calculations.) Show workings

Part 2) If 21,900 pairs of shoes are sold in a year, what would be New Stores net operating income (loss)? Show workings.

Part 3) The company is considering paying the New Stores manager an incentive commission of 70 cents per pair of shoes (in addition to the salespersons commission). If this change is made, what will be the new break-even point in unit sales and dollar sales? (Do not round intermediate calculations. Round your final answers to the nearest whole number.) Show workings.

Part 4. Refer to the original data. The company is considering eliminating sales commissions entirely in its shops and increasing fixed salaries by $31,200 annually. If this change is made, what will be the New Store's new break-even point in unit sales and dollar sales? (Do not round intermediate calculations.) Show workings.