Required Information [The following information applies to the questions displayed below) Angie Silva has recently opened The Sandal Shop in Brisbane, Australia, a store that specializes in fashionable sandals. In time, she hopes to open a chain of sandal shops. As a first step, she has gathered the following data for her new store: Sales price per pair of sandals $ 28 Variable expenses per pair of sandals 14 Contribution margia per pair of sandals $ 14 Fixed expenses per year: Building rental $ 4,200 Equipment depreciation 5,600 Selling 7, ree Administrative 11,200 Total Fixed expenses $ 28,000 3. Angie has decided that she must earn a profit of $ 28,000 the first year to justify her time and effort. How many pairs of sandals must be sold to attain this target profit? Unit sales to attain target profit pairs 4 Angle now has two salespersons working in the store-one time and one part time. It will cost her an additional 59,000 per year to convert the part time position to all time position Angle believes that the change would increase annual sales by $39,200. Should she convert the position Use the incremental porosch Mume Choice Yus bang No 5. Refer to the original data. During the first year, the store sold only 3,000 pairs of sandals and reported the following operating results: Sales (3,000 pairs) Variable expenses Contribution margin Fixed expenses Net operating income $ 4,000 42.000 42,000 28 $ 14,000 a. What is the store's degree of operating leverage? b. Angie is confident that with a more intense sales effort and with a more creative advertising program she can increase unit sales by 50% next year "Using the degree of operating leverage, what would be the expected percentage increase in net operating Income if Angie is able to increase unit sales by 50%? 6. Degree of operating leverage Expected percentage Increase in net operating income