Question 2 The details of sales price and variable expenses per unit of FHH Inc, involved in the sale of garments in the region, is provided herewith. The company provides attractive sales commission to the staff, to motivate them to sell more. In addition, the sales staff receive a basic salary. The company have many outlets in the region, and the information provided here relates to one of their stores. Selling Price Variable Expos Invoice Cost Sales Com 55.00 Total Variable Experties $25.00 Anna Fixed Expense Re 550.000 Advertising $13.000 Salaries $70,000 Total Fired Expenses $10.00 The company has asked you, as a member of its planning group, to assist in some basic analysis of its stores and company policies. Required: 1. Calculate the annual break-even point in dollar sales and in unit sales for the selected store. 2. If 25,000 shirts are sold in a year, what would be stores net operating income or loss? 3. The company is considering paying the store manager an incentive commission of S3 per shirt (in addition to the salespersons' commissions). If this change is made, what will be the new break-even point in dollar sales and in unit sales? 4. Refer to the original data. As an alternative to (3) above, the company is considering paying the store manager a S2.5 commission on cach shirt sold in excess of the break-even point. If this change is made, what will be the store's net operating income or loss if 25,000 shirts are sold in a year? 5. Refer to the original data. The company is considering eliminating sales commissions entirely in its stores and increasing fixed salaries by $100,000 annually. a. If this change is made, what will be the new break- even point in dollar sales and in unit sales in the store? b. Would you recommend that the change be made? Explain