answer questions 1-4

Comprehensive Problem Denny's, a retail stores, operates a chain of stores that sells different handbags, The store has a store manager who is paid a fixed salary. Individual salespeople receive a fixed salary and a sales commission. Denny's is considering opening another store that is expected to have revenue and cost as follow: Fixed Costs Amount Advertising Expense $40,000 Other Fixed Expenses 10,000 Rent Expense 30,000 Salaries Expenses 100,000 Per unit Variable Costs Amount Selling Price $ 60 Sales Commission 13 J Cost of handbag 37 The following questions are based on the above cost data: (1) What is the yearly breakeven in a) Units sold b) Revenue 2) What will Denny's operating income be if the store sold 8, 000 units? 3) Denny's is considering paying all the salesperson a fixed salary instead of allowing the sales person to work on commission. If Denny's take away the commission, he would have to increase fixed salary by $15, 500. What would be impact on yearly breakeven point in a) Units Sold b] Revenue 4) Scenario # 1: What if in addition to the fixed salary, the store manager is paid a commission of $2 per unit of each item sold. What would be the yearly breakeven a) Units sold b] Revenue