This is the second time I am submitting this, as the first time the answer I got was not what would the average sales ticket have to increase to breakeven. Please show how this would be calculated. Questions 5 and 6. Thanks

Exhibit 1 Hallstead Jewelers; Income Statements for Years Ended January 31 (thousands of dollars) 2003 2004 2006 Sales $8,58 3 4,326 $8,10 2 4,132 $10,71 1 5,570 $4,25 7 $3,97 0 $5,141 Expenses Selling expense Salaries Commissions Advertising Administrative expenses 2,021 429 254 418 2,081 405 250 425 3,215 536 257 435 Rent Depreciation Miscellaneous expenses 420 84 53 420 84 93 840 142 122 $3,67 9 $578 $3,75 8 $212 $5,547 Cost of goods sold Gross margin Total expenses Net income ($406) Exhibit 2 Hallstead Jewelers Operating Statistics Sales space (square feet) Sales per square foot Sales tickets Average sales ticket 2003 2004 2006 10,23 0 $839 5,341 $1,60 7 10,23 0 $792 5,316 $1,52 4 15,28 0 $701 6,897 $1,55 3 5. How much would the average sales ticket have to increase to breakeven if the fixed cost remained the same in 2007 as it was in 2006? 6. What do you recommend the managers at Hallstead Jewelers do