REQUIRED: (CONSIDER EACH QUESTION INDEPENDENTLY UNLESS STATED OTHERWISE) 1. What is the annual breakeven point in units sold and revenues? 2. If 30,000 units are sold, what will be the store's operating income (loss)? 3. If sales commissions are discontinued and fixed salaries are raised by a total of $60,000 (we will call this the "higher fixed salaries only" plan), what would be the annual breakeven point in units sold and revenues? 4. Refer to the original data. If, in addition to his fixed salary, the store manager is paid a commission of $0.25 per unit sold, what would be the annual breakeven point in units sold and revenues? 5. Refer to the original data. If, in addition to his fixed salary, the store manager is paid an additional commission of $0.25 per unit in excess of the breakeven point, what would be the store's operating income if 45,000 units were sold? 6. Refer to the original data. Calculate the number of units sold which the owner of WalkRite would be indifferent (ie, that is the operating income is the same) between the original salary plus commissions plan for salespeople and the higher fixed salaries only plan (ie. the fixed salary plan described in item 3 above). 7. As owner, which sales compensation plan would you choose if forecasted annual sales of the new store were at least 62,000 units (use calculations for cach scenario to support your response)? What do you think of the motivational aspect of your chosen compensation plan? 8. Suppose the target operating income is $170,000. How many units must be sold to reach the target operating income under (a) the original salary plus commissions plan and (b) the higher fixed salaries only plan? 9. You open the new store on January 1 , with the salary plus commission compensation plan in place. Because you expect the cost of the shoes to rise due to inflation, you place a firm bulk order for 50,000 shoes and lock in the $14.00 price per unit. But, toward the end of the year, only 48,000 shoes are sold, and you authorize a markdown of the remaining inventory to $12.00 per unit. Finally, all units are sold. Salespeople, as usual, get paid a commission of 4% of the sales price. What is the annual operating income for the store