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Hoeme Read, Stud s Practice FULL SCREEN 1 BACK Problem 19-4A Mary Willis is the advertising manager for Bargain Shoe Store. She is currently working
Hoeme Read, Stud s Practice FULL SCREEN 1 BACK Problem 19-4A Mary Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her ideas indude the instalation of a new lighting system and increased display space that will add $49,200 n fixed cats to the$396,000 currently spent. In addition, Mary is proposing that a s% once decrease S60 to $57 wil pr duce a 20% n rease n sales volume 20,000 to 24,000 Variable costs will remain at $36 per pair of shoes. Management is impressed with Mary's ideas but concerned about the effects that these changes will have on the break-even point and the margin of satety Bevi av.Sludx Compute the current bresk-even point in units, and compare it to the break-even point in units if Mary's ideas are used. (Round answers to o decimal places, e-g 1,225) Current break-even point pairs of shoes New break even point pairs of shoes Compute the margin of safety ratio for current operations and after Mary's changes are introduced. (Round answers fo 0 ecimal places eo s%) Current margin of safety ratio New margin of safety ratio
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