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Calculate the breakeeven point and margin ofsafety ratio, and prepare a CV? income statement before and after changes in the business environment. P6.45A (g, g,
Calculate the breakeeven point and margin ofsafety ratio, and prepare a CV? income statement before and after changes in the business environment. P6.45A (g, g, 3, 4) Alice Oritz 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 $18,000 in xed costs to the $216,000 currently spent. In addition, Alice is proposing that a 1096 price decrease (330 to $27) 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 Alice's ideas but is concerned about the effects that these changes \"ill have on the breakreven point and the margin of safety. Instructions a. Calculate the current breakeven point in units, and compare it with the break-even point in units ifAlicee ideas are used. b. Calculate the margin of safety ratio for current operations and after Alice's changes are introduced. [Round to nearest full percent.) l3. Current margin of safety ratio = 40%\" c. Prepare CVP income statements for the year ended December 31, 2022, for current operations and after Alice's changes are introduced. (Show total amounts only.) Would you make the changes suggested
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