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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 $19,000 in fixed costs to the $128,000 currently spent. In addition, Blossom 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 Blossom'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-evop point in units if Blossom's ideas are used. Current break-even point New break-even point pairs of shoes pairs of shoes Compute the margin of safety ratio for current operatlons and after Blossom's changes are introduced. (Round answers to 0 decimal places, e.8. 15\%) Current margin of safety ratio * New margin of safety ratio %

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