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Current Attempt in Progress Cullumber Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her
Current Attempt in Progress Cullumber 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 $37,900 in fixed costs to the $345,600 currently spent. In addition, Cullumber is proposing that a 5% price decrease ($40 to $38) will produce a 25% increase in sales volume (25,600 to 32,000). Variable costs will remain at $25 per pair of shoes. Management is impressed with Cullumber's ideas but concerned about the effects that these changes will have on the break-even point and the margin of safety. Compute the current break-even point in units, and compare it to the break-even point in units if Cullumber's ideas are used. Current break-even point New break-even point eTextbook and Media pairs of shoes pairs of shoes Compute the margin of safety ratio for current operations and after Cullumber's changes are introduced. (Round answers to 0 decimal places, eg. 15%.) Current margin of safety ratio be here to search % Z 11C Cloudy 7
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