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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 of

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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 of a new lighting system and increased display space that will add $23,780 in fixed costs to the $221,400 currently spent. In addition, Crane is proposing that a 5% price decrease ($40 to $38) will produce a 25% increase in sales volume (16,400 to 20,500). Variable costs will remain at $25 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 pairs of shoes New break-even point pairs of shoes

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