Embleton Company estimates that variable costs will be 80% of sales, and fixed costs will total $ 368,800. The selling price of the product is $4. Calculate the break-even point in units and dollars. Break-even point units Break-even point $ e Textbook and Media Assuming actual sales are $ 2,305,000, calculate the margin of safety in dollars and as a ratio. Margin of safety $ Break-even point $ e Textbook and Media Assuming actual sales are $ 2,305,000, calculate the margin of safety in dollars and as a ratio. Margin of safety $ Margin of safety ratio % Alice Oritz is the advertising manager for Value 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 $ 25,200 in fixed costs to the $ 247,800 currently spent. In addition, Alice is proposing that a 10% price decrease ($ 35 to $31.50) will produce a 20% increase in sales volume (20,000 to 24,000). Variable costs will remain at $ 14 per pair of shoes. Management are impressed with Alice's ideas but are concerned about the effects that these changes will have on the break-even point and the margin of safety. Calculate the current break-even point in units, and compare it with the break-even point in units if Alice's ideas are used. Current break-even point units Break-even point if Alice's ideas are used units Current break-even point units Break-even point if Alice's ideas are used units e Textbook and Media Calculate the margin of safety ratio for current operations and after Alice's changes are introduced. Current margin of safety ratio % Margin of safety ratio Alice's changes are introduced % Prepare CVP income statements for current operations and after Alice's changes are introduced. VALUE SHOE STORE CVP Income Statement Current New $ $ VALUE SHOE STORE CVP Income Statement Current New $ $ $ $ Would you make the changes suggested? The changes be made. Queensland Company makes radios that sell for $ 40 each. For the coming year, management expects fixed costs to total $ 146,000 and variable costs to be $30.00 per unit. Your answer is incorrect. Calculate the break-even point in dollars using the contribution margin ratio. $ Break-even point Calculate the margin of safety ratio assuming actual sales are $ 730,000. % Margin of safety ratio Calculate the sales dollars required to earn operating income of $ 145,000. $ Required sales