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Tideline Towels Ltd operates a chain of small retail outlets located at every public beach in the summer months. The outlets sell ten different styles

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Tideline Towels Ltd operates a chain of small retail outlets located at every public beach in the summer months. The outlets sell ten different styles of beach towels and flip-flops with identical unit costs and selling prices. A unit is defined as one towel or pair of flip-flops. Each outlet has a manager who is paid a fixed salary. Individual salespeople are paid a combination of fixed salary and a sales commission. Tideline Towels Ltd is trying to determine the desirability of opening another outlet at Long Beach in Tofino, BC. The new outlet is expected to have the following revenue and cost relationships: Selling price, per item $ 25.00 Cost per item 5.40 Sales commissions per helmet 1.80 Outlet rent 37.500 Salaries 145,000 Advertising 23.000 Other fixed costs 10.500 Required (Consider each question independently and use two decimal places.) a. What is the annual breakeven point in (a) items sold and (b) revenues? (2 marks) b. If the corporate tax rate were 25%, how much additional revenue would have to be earned in order to earn $20,000 after taxes? (2 marks) c. If 25.000 towels and flip-flops are sold, what will be the company's operating income (loss)? (2 marks) d. If sales commissions were discontinued for individual salespeople in favour of

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