You are the owner and manager of Al Bundy's Shoe Emporium in the beautiful Horizon Mall, just outside of Schaumburg, Illinois. You purchased it from Mr. Bundy on December 31, 2020, for $805,000. For the year 2021, the average price of a pair of shoes that you sold was $80 and over the year, you averaged selling 1,800 pairs per month. For the shoes that you sold, you paid your suppliers $950,400. As part of the sales deal, and so you can continue to use the valuable Al Bundy name, you pay Mr. Bundy a royalty of five percent of all sales. You pay yourself $65,000 per year. You have 10 employees who average $40,000 per year in salary The payroll taxes and benefits total 15 percent of all salaries.. The rent and other mall services provided (e.g., security) cost $5,000 per month. Electric costs are $2,100 per month, while your phone and internet access cost $900 per month (total for both). Advertising efforts were distributed over three media. The store has a billboard near the mall that costs $1,000 per month. Sales announcements and coupons were delivered via direct mail at a cost of $2,000 per month. You spent that same amount ($2,000 per month) for radio advertising. Other costs include: Insurance Accounting/legal Office supplies $500 per month $1,000 per month $1,250 per month During the year, you became concerned about your profitability. Hence, you hired a consultant to evaluate your operations. She was paid $10,000. 1) Construct the income statement for 2021. Make sure to include a column showing percentage of sales. 2) What is the gross profit in dollars and on a percentage basis? 3) What is the operating profit? 4) What was the breakeven sales level for 2021? 5) What was the ROI in 2021? 6) For one pair of Johnston & Murphy Oxford shoes, you pay the supplier $80. Your retail on that pair of shoes is $155. What is your gross profit in dollars on that pair of shoes? What is your markup in dollars? What is your gross profit percentage? What is your markup percentage? 7) Suppose your cost of goods sold in dollars was reduced by 10 percent. What would your gross and operating profits be? 8) In 2022, you project a 20 percent increase in sales. You also plan to give a 6 percent wage increase to your employees, although you intend to pay yourself the same amount as in 2021. The other operating costs remain the same, except that you do not expect to hire the consultant again. The royalty rate remains the same. The cost of goods sold is projected to be 49.50%. What is the projected gross profit in dollars for 2022? What is the projected operating profit in dollars?