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Crane Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation
Crane 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 $16,800 in fixed costs to the $133,000 currently spent. In addition, Crane 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 Crane's ideas but concerned about the effects that these changes will have on the break-even point and the margin of safety. (a) Compute the current break-even point in units, and compare it to the break-even point in units if Crane's ideas are used. Current break-even point New break-even point pairs of shoes pairs of shoes (b) Save for Later Attempts: 0 of 1 used Submit Answer The parts of this question must be completed in order. This part will be available when you complete the part above.
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