1. State the problem: The shop sells 25000 pairs annually, the selling price per pair is 320000, the purchase (variable) cost per pair is 200000, and total annual fixed costs are salaries 800000, advertising 320000, and other fixed expenses 800000. 2. Formula and rules: Use the contribution-margin approach where breakeven in units equals fixed costs divided by contribution margin per unit. $$BE_{units} = \frac{Fixed\ Costs}{Price - Variable\ Cost}$$ Important rule: Contribution margin per unit is Price minus Variable Cost and fixed costs must be covered by total contribution. 3. Compute the contribution margin per unit. $$CM = Price - Variable\ Cost = 320000 - 200000 = 120000$$ 4. Sum the fixed costs. $$Fixed\ Costs = 800000 + 320000 + 800000 = 1920000$$ 5. Compute the breakeven units using the formula and the computed values. $$BE_{units} = \frac{1920000}{120000} = 16$$ 6. Compute the breakeven sales value (revenue at breakeven). $$BE_{value} = BE_{units} \times Price = 16 \times 320000 = 5120000$$ 7. Interpretation and note: The contribution margin ratio helps to understand the proportion of each sales unit that contributes to fixed costs and profit. $$CM_{ratio} = \frac{120000}{320000} = 0.375 = 37.5\%$$ Final answer: The breakeven point is $16$ pairs and the breakeven sales value is $5120000$.