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alice shoemaker is the advertising manager for value shoe store. she is currently working on a major promotional campaign. her ideas include the installation of
alice shoemaker is the advertising manager for value 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 $34,000 in fixed costs to the $270,000 currently spent. in addition, alice is proposing that a 5% price decrease ($40 to $38) will produce a 20% increase in sales volume (20,000 to 24,000). variable costs will remain at $22 per pair of shoes. mangement is impressed with alice's ideas but concerned about the effects that these changes will have on the break - even point and the margin of safety. compute the margin of safety for current operations and after alice's changes are introduced. (round to the nearest percent.)
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