The Fashion Shoe Company operates a chain of women$$s shoe shops carrying many styles of shoes all sold for $$30$ per pair. Sales personnel in the shops are paid a sales commission on each pair of shoes sold plus a small base salary.

The following data pertains to Shop $48$ and is typical of the company$$s many outlets:

Per Pair of Shoes

Selling price $ $30\mathrm{.}00$

Variable expenses:

Invoice cost $ $13\mathrm{.}50$

Sales commission $4\mathrm{.}50$

Total variable expenses $ $18\mathrm{.}00$

Annual

Fixed expenses:

Advertising $ $30,000$

Rent $20,000$

Salaries $100,000$

Total fixed expenses $ $150,000$

$1.$ What is Shop $48\text{'}$s annual break$-$even point in unit sales and dollar sales?

Note: Do not round intermediate calculations.

Break$-$even point in unit sales $?$

Break$-$even point in dollar $?$

$2.$ Prepare a CVP graph showing cost and revenue data for Shop $48$ from zero shoes up to $17,000$ pairs of shoes sold each year. Clearly indicate the break$-$even point on the graph.

$3.$ If $12,000$ pairs of shoes are sold in a year, what would be Shop $48$s net operating income $($loss$)?$

$4.$ The company is considering paying the Shop $48$ store manager an incentive commission of $75$ cents per pair of shoes $($in addition to the salesperson$$s commission$).$ If this change is made, what will be the new break$-$even point in unit sales and dollar sales?

$5.$ Refer to the original data. As an alternative to $(4)$ above, the company is considering paying the Shop $48$ store manager $50$ cents commission on each pair of shoes sold in excess of the break$-$even point. If this change is made, what will be Shop $48\text{'}$s net operating income $($loss$)$ if $15,000$ pairs of shoes are sold?

$6.$ Refer to the original data. The company is considering eliminating sales commissions entirely in its shops and increasing fixed salaries by $$31,500$ annually. If this change is made, what will be Shop $48\text{'}$s new break$-$even point in unit sales and dollar sales?

New Break$-$even point in unit sales $?$

NewBreak$-$even point in dollar sales $?$