Business Finance Homework Help

Hello, need help with the case study. Please, see the attached case and questions below, everything must be answered in Excel format.

Complete the following:

undefined

1. How has the break-even point in number of sales tickets (number of customer orders written) and break-even in sales dollars changed from 2003 to 2004 to 2006? How has the margin of safety changed? What caused the changes?
2. One idea that the consultant had was to reduce prices to bring in more customers. If average prices were reduced ten percent (10%), and the number of sales tickets (unit sales) increased to 7,500, would the company’s income be increased? With prices reduced, what would be the new break-even point in sales tickets and sales dollars?
3. Another idea that Gretchen had was to eliminate the sales commissions. Hallstead was the only jewelry store in the city that paid sales commissions, and although both Grandfather and Father had insisted that commissions were one of the reasons for their success, Gretchen had her doubts. How would the elimination of sales commissions affect the break-even volume?
4. Michaela felt that a bigger store could benefit from greater advertising and suggested that they increase the advertising by $200,000. How would this affect the break-even point? Would you recommend that the sisters try this?
5. How much would the average sales ticket have to increase to break-even if the fixed cost remained the same in 2007 as it was in 2006?
6. What do you recommend that the managers at Hallstead Jewelers do?