10.0/1b = View Policies Show Attempt History Current Attempt in Progress Carla Vista Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of a new lighting system and increased display space that will add $ 34,220 in fixed costs to the $ 318,600 currently spent. In addition, Carla Vista is proposing that a 5% price decrease $ 40 to $38) will produce a 25% increase in sales volume ( 23.600 to 29,500). Variable costs will remain at $ 25 per pair of shoes. Management is impressed with Carla Vista's Ideas but concerned about the effects that these changes will have on the break-even point and the margin of safety (a) Your answer is correct. Compute the current break-even point in units, and compare it to the break-even point in units i Carla Vista's ideas are used Current break-even point 21240 pairs of shoes New break-even point 27140 pairs of shoes (b) Your answer is correct. Compute the margin of safety ratio for current operations and after Carlo Vista's changes are introduced (Round answers too decimal places, c.8. 15%) Current margin of safety ratio 10 %6 New margin of safety ratio 8 36 eTextbook and Media Attempts: 1 of 5 used (c) Prepare a CVPincome statement for current operations and after Carta Vist's changes are introduced BARGAIN SHOE STORE CVP Income Statement Current New Sales $ Variable pene Contribution Margin Fixed E Net Income Low 5 Would you make the charges sucested? eTextbook and Media