Betty 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 $23,600 in fixed costs to the $129,000 currently spent. In addition, Betty is proposing that a 5% price decrease ($20 to $19) will produce a 20% increase in sales volume (20,000 to 24,000). Variable costs will remain at $12 per pair of shoes. Management is impressed with Betty's ideas but concerned about the effects that these changes will have on the break-even point and the margin of safety. Prepare a CVP income statement for current operations and after Betty's changes are introduced. BARGAIN SHOE STORE Sales Variable Expenses Contribution Margin Fixed Expenses Net Income/(Loss) CVP Income Statement 1A Current 400000 24000 376000 129000 69 247000 $ +A New 456000 288000 i 223000 152600 70400 Compute the current break-even point in sales units, and compare it to the break-even point in sales units if Betty's ideas are implemented. (Round answers to 0 decimal places, e.g. 5,275.) Current break-even point New break-even point pairs of shoes pairs of shoes Compute the margin of safety ratio for current operations and after Betty's changes are introduced. (Round answers to O decimal places, e.g. 15%.) Current margin of safety ratio New margin of safety ratio %