Carol 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 llghting system and increased display space that will add $$24,600$ in frokd costs to the $$128\mathrm{.}000$ currently spent. In addition, Carol 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 Carol's ideas but concerned about the effects that these changes will have on the break$-$even point and the margin of safely.

$($a$)$

Vour answer is correct.

Prepare a CVP income statement for current operations and after Carol'schanges are introduced.

Attempts: $2$ of $3$ used

$($b$)$

Compute the current break$-$even point in sales units, and compare it to the break$-$even point in sales units if Carol's ideas are implemented. $($Round answers to $0$ decimal places, e$8,5,275)$

Current breakeven point $$ pairs of shoes

New break even point $$ pairs of shoes

eTextbook and Media

Sinotor alitio

Attempts: $0$ of $3$ used

$($c$)$

The parts of this question must be completed in order. This part will be avallable when you complete the part above.