22.5 thanks

P22.5 (LO 3, 4, 5), E Mary Willis is the advertising manager for Bargain Shoe Store. She is currently Compute break-even point and margin working on a major promotional campaign. Her ideas include the installation of a new lighting system of safery ratio, and prepare a CVP and increased display space that will add $29,000 in fixed costs to the $270,000 currently spent. In addi- income statement before and after tion, Mary is proposing that a 5% price decrease ( $40 to $38 ) will produce a 25% increase in sales volume changes in business enuironment (20,000 to 25,000 ). Variable costs will remain at $25 per pair of shoes. Management is impressed with Mary's ideas but concerned about the effects that these changes will have on the break-even point and the margin of safety. Instructions a. Prepare a CVP income statement for current operations and after Mary's changes are introduced. (Show column for total amounts only.) Would you make the changes suggested? b. Compute the current break-even point in sales units, and compare it to the break-even point in sales units if Mary's ideas are implemented. c. Compute the margin of safety ratio for current operations and after Mary's changes are introduced. c. Current margin of safety (Round to nearest full percent.) ratio 10% P22.6 (LO 3, 4, 5), AN Viejol Corponation has collected the following information after its first year of Compute contribution margin, fored operations. Sales were $1,600,000 on 100,000 units, selling expenses $250,000(40% variable and 60% cosss, breakeven point, salesfor tanget fixed), direct materials $490,000, direct labor $290,000, administrative expenses $270,000 ( 20% variable net income, and margin of safety natio