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. S40.00 Selling Price Variable Expenses Invoice Cost Sales Commission Total Variable Expenses $20.00 $5.00 $25.00 Annual Fixed Expense Rent Advertising Salaries Total Fixed Expenses $50,000 $125,000 $70,000 $245,000 store. 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 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 $3 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 $2.5 commission on each 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