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Donna Clark is the advertising manager for Pharoah Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of

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Donna Clark is the advertising manager for Pharoah 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 $20,160 in fixed costs to the $241,920 currently spent. In addition, Donna is proposing that a 10% price decrease ($30 to $27) will produce a 20% increase in sales volume (22,400 to 26,880). Variable costs will remain at $12 per pair of shoes. Management is impressed with Donna's ideas but are concerned about the effects that these changes will have on the break-even point and the margin of safety. Your answer is partially correct. Calculate the current break-even point in units, and compare it with the break-even point in units if Donna's ideas are used. Current break-even point 13,440 units Break-even point if Donna's ideas are used units eTextbook and Media Question Part Score 0.5/1 Your answer is incorrect. Calculate the margin of safety ratio for current operations and after Donna's changes are introduced. (Round final answers to 2 decimal places, e.g. 15.25%) Current margin of safety ratio % Margin of safety ratio Donna's changes are introduced eTextbook and Media Question Part Score 0/0.5 Your answer is partially correct. Prepare CVP income statements for current operations and after Donna's changes are introduced, for

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