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 $23,780in fixed costs to the $221,400currently spent. In addition, Crane is proposing that a 5% price decrease ($40to $38) will produce a25% increase in sales volume (16,400to20,500). Variable costs will remain at $25per 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

Student Portal | Main X K PHI-103 Calendar X WP ACC-240 TOPIC 05 ASSIGNMENT X WP NWP Assessment Player UI Appli X Homework Help - Q&A from On X + X C A & https://education.wiley.com/was/ui/v2/assessment-player/index.html?launchld=702dd887-74dc-4f50-8095-d21f46ea2416#/question/4 G {3 - ACC-240 TOPIC 05 ASSIGNMENT Question 5 of 6 - / 10 (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 pairs of shoes New break-even point pairs of shoes e Textbook and Media Save for Later Attempts: 0 of 5 used Submit Answer (b). Compute the margin of safety ratio for current operations and after Crane's changes are introduced. (Round answers to O decimal places, e.g. 15%.) Current margin of safety ratio o New margin of safety ratioStudent Portal | Main X K PHI-103 Calendar X WP ACC-240 TOPIC 05 ASSIGNMENT X WP NWP Assessment Player UI Appli X Homework Help - Q&A from On X + X C A & https://education.wiley.com/was/ui/v2/assessment-player/index.html?launchld=702dd887-74dc-4f50-8095-d21f46ea2416#/question/4 G {3 - ACC-240 TOPIC 05 ASSIGNMENT Question 5 of 6 - / 10 ( c ). Prepare a CVP income statement for current operations and after Crane's changes are introduced. BARGAIN SHOE STORE CVP Income Statement Current New $ to $ Would you make the changes suggested? v eTextbook and Media