The Hiking Shop is a store that specializes in hiking shoes. The owner, Angelo, has just received a degree in business and is anxious to apply the principles he has learned to his business. In time, he hopes to open a second shop. As a first step, he has prepared the following monthly analysis for his new store: Monthly Sales (3,000 pairs) $150.000 Variable Costs 60.000 Contribution Margin 90.000 Fixed Costs 75,000 Net Income $ 15.000 1. How many hiking shoes must be sold each year to break even? (2 pts) 2. Angelo must earn $22,000 of monthly net income to afford his lifestyle. How many pairs of hiking shoes must be sold to reach this target profit? (3 pts) 3. Angelo has taken a managerial accounting graduate class. He came up with the following scenario that he thinks will allow him to reach his goal. . The Hiking Shop has two sales people (all sales are made by these 2 people) currently making a fixed salary of $2,500 per person per month. Angelo will change these employees from salary to 100% sales commission. The 2 sales people will earn a 10% sales commission for all hiking shoes sold. He thinks this will motivate the employees to sell more so units sold will increase by 1,000 units. . Lastly, Angelo thinks advertising is important. He wants to increase advertising by $10,000 per month. He thinks this will raise units sold by an additional 350 units