The TreadWear Shoe Company operates a chain of shoe stores that sell 10 different styles of inexpensivemen's shoes with identical unit costs and selling prices. A unit is defined as a pair of shoes. Each store has a store manager who is paid a fixed salary. Individual salespeople receive a fixed salary and a sales commission. TreadWear is considering opening another store that is expected to have the revenue and cost relationships shown here.

Unit Variable Data (per pair of shoes)

Annual Fixed Costs

Selling price $60.00

Cost of shoes $33.00

Sales commission $6.00

Variable cost per unit $39.00

ANNUAL FIXED COSTS

Rent $25,000

Salaries $171,500

Advertising $32,000

Other fixed costs $13,000

Total fixed costs

$241,500

Requirement 1a. What is the annual breakeven point in unitssold?

Determine the formula used to calculate the breakeven number ofunits, then calculate the number of units that must be sold to break even.

Fixed costsContribution margin per unit=Breakeven number of units$241,500$21=11,500

Requirement 1b. What is the annual breakeven point inrevenues?

Determine the formula used to calculate the breakevenrevenue, then calculate TreadWear's annual breakeven point in revenues.

Breakeven number of unitsSelling price=Breakeven revenues 11,50060=$690,000

Requirement 2. If 33,000 units aresold, what will be thestore's operating income(loss)?

Determine the formula used to calculate the operating income(loss) and then enter the amounts to determine thestore's operating income(loss). (Use parentheses or a minus sign for aloss.)

Operating (Contribution margin per unitQuantity of units sold) -Fixed costs=income (loss) (2133,000) -241,500=451,500

Requirement 3a. If sales commissions are discontinued and fixed salaries are raised by a total of $17,700, what would be the annual breakeven point in unitssold?

The annual breakeven point in units sold would be 9,600 units.

Requirement 3b. If sales commissions are discontinued and fixed salaries are raised by a total of $17,700, what would be the annual breakeven point inrevenues?

The annual breakeven point in revenues would be

$576,000

.

Requirement 4a. Refer to the original data.If, in addition to his fixedsalary, the store manager is paid a commission of $4.20 per unitsold, what would be the annual breakeven point in unitssold? (Do not round any of yourcalculations.)

The annual breakeven point in units sold would be 14,375 units.

Requirement 4b. Refer to the original data.If, in addition to his fixedsalary, the store manager is paid a commission of $4.20 per unitsold, what would be the annual breakeven point inrevenues? (Do not round any of yourcalculations.)

Using the same information as requirement4a, calculate the breakeven point in revenues.

The annual breakeven point in revenues would be $862,500

.

Requirement 5. Refer to the original data.If, in addition to his fixedsalary, the store manager is paid a commission of $4.20 per unit in excess of the breakevenpoint, what would be thestore's operating income if 50,000 units weresold? (Do not round any of yourcalculations.)

Operating income would be

I only need assistance with the operating income...the rest of the question is correct.