Question 4 (16 marks) The Walk Rite Shoe Company operates a chain of shoe stores that sell men's shoes with identical unit costs and selling prices. A unit is defined as a pair of shoes. Each store has a store manager who is paid a fixed salary. Individual salespeople receive a fixed salary and a sales commission. WalkRite is considering opening another store that is expected to have the revenue and cost relationship as follows: Unit Variable Data (per pair of shoes) Annual Fixed Costs Selling price $30.00 Rent Variable Cost of shoes 19.50 Salaries Sales commission 4.50 Advertising Other fixed costs Total fixed costs WalkRite expects that the store can sell 64,000 pairs of shoes annually. $60,000 200,000 80,000 20,000 $360,000 Required: a) What is the breakeven point in pairs of shoes sold and in sales dollars? (4 marks) b) At the expected sales level of 64,000 pairs of shoes, what is the margin of safety in percentage of sales? (2 marks) c) If salespeople are paid a commission of only $4.1 per pair of shoes sold and fixed salary is increased by $15,000, sales level is expected to decrease by 3%. Should the plan be carried on? Show your analysis, including the amount of change to net income. (10 marks)