Required:
1.  How many pairs of sandals must be sold each year to break even? What does this represent in total sales dollars? 
2. Perpare a CVP graph for the shore from a zero level of activity up to 4,000 pairs of sandals sold each year. Indicate the break-even point on your graph.
3. Angie has decided that she must earn at least $ 18,000 the first year to justify her time and effort. How many pairs of sandals must be sold to reach this target profit?
4. Angie now has two salespersons working in the store–one full time and one part time. It will cost her an additional that $ 8,000 per year to convert the part-time position to a full-time position. Angie believes that the change would bring in an additional $25,000 in sales each year. Should she convert the position? Use the incremental approach. (Do not prepare an income statement)