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Blossom Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of

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Blossom 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 $29,580 in fixed costs to the $275,400 currently spent. In addition, Blossom is proposing that a 5% price decrease ( $40 to $38 ) will produce a 25% increase in sales volume (20,400 to 25,500). Variable costs will remain at $25 per pair of shoes, Management is impressed with Blossom's ideas but concerned about the effects that these changes will have on the break-even point and the margin of safety. (a) Correct Answer (Used) Your answer is partially correct: Compute the current break-even point in units, and compare it to the break-even point in units if Blosion's ideas are used. Current break-even point pairs of shoes New break-even point pairs of shoes Compute the margin of safety ratio for current operations and after Blossom's changes are introduced. (Round arawers to 0 decimal places, es 15\%. Current margin of safety ratio New margin of satety ratio

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