Compute the margin of safety ratio for current operations and after Ruth's changes are introduced. (Round...

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Compute the margin of safety ratio for current operations and after Ruth's changes are introduced. (Round answers to O decimal places, e.g. 15%) Current margin of safety ratio New margin of safety ratio 15 10 Would you make the changes suggested? Your answer is correct. Compute the current break-even point in sales units, and compare it to the break-even point in sales units if Ruth's ideas are implemented. (Round answers to O decimal places, e.g. 5,275) Current break-even point New break-even point eTextbook and Media 17000 pairs of shoes 22000 pairs of shoes Prepare a CVP income statement for current operations and after Ruth's changes are introduced. BARGAIN SHOE STORE CVP Income Statement Current Sales 800000 New 912000 Variable Expenses 480000 i 576000 Contribution Mangin 320000 336000 Fixed Expenses 272000 i 308000 Net Income/Lois) 48000 28000 Ruth 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 $36,000 in fixed costs to the $272,000 currently spent. In addition, Ruth is proposing that a 5% price decrease ($40 to $38) will produce a 20% increase in sales volume (20,000 to 24,000). Variable costs will remain at $24 per pair of shoes. Management is impressed with Ruth's ideas but concerned about the effects that these changes will have on the break-even point and the margin of safety. Compute the margin of safety ratio for current operations and after Ruth's changes are introduced. (Round answers to O decimal places, e.g. 15%) Current margin of safety ratio New margin of safety ratio 15 10 Would you make the changes suggested? Your answer is correct. Compute the current break-even point in sales units, and compare it to the break-even point in sales units if Ruth's ideas are implemented. (Round answers to O decimal places, e.g. 5,275) Current break-even point New break-even point eTextbook and Media 17000 pairs of shoes 22000 pairs of shoes Prepare a CVP income statement for current operations and after Ruth's changes are introduced. BARGAIN SHOE STORE CVP Income Statement Current Sales 800000 New 912000 Variable Expenses 480000 i 576000 Contribution Mangin 320000 336000 Fixed Expenses 272000 i 308000 Net Income/Lois) 48000 28000 Ruth 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 $36,000 in fixed costs to the $272,000 currently spent. In addition, Ruth is proposing that a 5% price decrease ($40 to $38) will produce a 20% increase in sales volume (20,000 to 24,000). Variable costs will remain at $24 per pair of shoes. Management is impressed with Ruth's ideas but concerned about the effects that these changes will have on the break-even point and the margin of safety.