Question 1 Kwelae Lad operates a chain of shoe stores. The stores sell 10 different styles of men's shoes with identical purchase cost and selling prices. The company wants to determine the desirability of opening another store which would have the following cost and revenue relationship per unit 30.00 19.50 Selling price per unit Variable costs Cost of shoe Salesman's commission Total variable cost Annual fixed costs 1.50 21.00 Rent 60,000 Salaries 200,000 80,000 Advertising Other fixed expenses 20.000 360,000 Required: () What is the annual break-even point in units and value? (1) If 35,000 pairs of shoes are sold, what would the stores net income be? (ii) If the store's manager was paid C0.30 per pair as sales commission, what would the annual break- even point be in sales unit and value? (iv) If the store's manager was paid C0.30 per pair as sales commission on sales in excess of break- even point, what would the stores annual net income be if 50,000 pairs were sold? (6) If the store manager wants to compute separate break-even points for gents' and ladies' shoes, what additional assumptions will you have to make