The LOLA'S store presents the following information related to your income and costs:

Sales Price .............................. $ 42

Invoice costs ........................... 22

Sales commissions ............... .. 6

Shipping .................................. 4

Advertising ........................... $ 60,000

Rent .................................... .. 30,000

Salaries .............................. .. 150,000

Requirements: 1. Calculate the "Break Even Point" in dollars and units

2. What would be the operational result if the company sells 30,000 units and sells 22,000? Prepare a Contribution income Statement

3. If the management wants to earn $ 225,000, how much do you have to sell in units and dollars?

4. If the management decides to increase the commissions to $ 3 more, what would be the new BEP?

5. If management decides to eliminate commissions and increase salaries to $ 230,000, what would be the new BEP.

6. If management decides to increase the price to $ 45, raise the variable costs to $ 36, the fixed costs increase to $ 260,000 in total. This strategy projects to earn $ 300,000. How many units should you sell ?????

7. With the original data, determine the Degree of Operating Leverage in dollars and percent.