Sun Sports Inc. has several kiosks in large and medium-sized shopping centers that sell various styles of men's and women's sports hats, all at the same price. In addition to the regular salary, the company pays a good commission to its salespeople in order for them to work hard and be proactive in sales. The following sales price and cost information is representative of each of the kiosks individually.

	Datos por gorro
Sale price	$42
Variable costs
cost per hat	$16
sales commission	$1.50
total variable cost	$17.50
	Costo anual
Fixed costs Wages	$39,000
kiosk rental	$23,000
Advertising	$56,000
Total fixed costs	$118,000

The company wants to review its policies and give additional incentives to bolster sales. It provides management with the following analysis of its stores:

1. Calculate the breakeven point in units and sales dollars of a kiosk

2. Prepare a cost-volume-profit graph showing the revenue and costs of a kiosk from 0 to 30,000 caps and the breakeven point.

3. Present the net operating results (net profit or loss) if 9,000 caps are sold per year

4. The company is evaluating the possibility of offering a commission of $1.50 per cap sold to the kiosk supervisor (in addition to the sales commissions paid to vendors in the kiosk). Determine the new breakeven point in sales dollars and units sold if this commission is added

5. Instead of the previous commission of $1.50 per hat sold, another alternative that the company wants to consider is to offer the supervisor only $1.50 for each hat sold in excess of breakeven. If only this commission is applied, what would be the net operating result (loss or net profit) if 12,000 caps are sold per year?

6. Another third alternative, instead of the above, is to completely eliminate sales commissions and increase fixed salaries by an additional $22,000 annually.

a. Presents the break-even point in dollars and sales units for this alternative. b. Explain whether or not you would recommend this alternative and why.

You must present the answer to the exercise in full and with the entire process to carry out the calculations

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