Sports Foot buys hiking socks for \$8 a pair and sells them for $10. Monthly fixed cosis are \$15,000 (for sales volumes between 0 and 6,000 pairs), fesuilting in a breakeven point of 7.500 units. Assume that Sports Foot has been selling 8,000 pairs of socks per month Read the reguirements Requirements 1. What is Sports Foot's current margin of safety in units, in sales dollars, and as a percentage? Explain the resuits 2. At this level of sales, what is Sports Foot's operating leverage factor? If volume declines by 8% due to increasing competition, by what percentage will the company's operating income decline? 3. Competition has forced Sports Foot to lower its sales price to $9 a pair. How will this affect Sports's breakeven point? 4. To compensate for the lower sales price, Sports Foot wants to expand its Requirements How will this affect Sports's breakeven point? 4. To compensate for the lower sales price, Sports Foot wants to expand its product line to include men's dress socks. Each pair will sell for $7.00 and cost $3 from the supplier. Fxeed costs will not change. Sports expects to sell four pairs of dress socks for every one pair of hiking socks (at its new $9 sales price). What is Sports's weighted-average contribution margin per unit? Given the 4.1 sales mix, how many of each type of sock will it need to sell to break even