how to solve these questions?
(a) pine ear utio Hiviet, 4.153 Carrew mergingl latuse tatio Prepare a CVPincomestatement for current operations and after Oriole's changes are introduced Would you make the chariges suegested? Oriole Wilitis 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 wilf add $31.900 in fixed costs to the $297,000 currently spent. In addition. Oriole is proposing that a 5% price decrease (\$40 to $38 ) will produce a 25% increase in sales volume (22,000 to 27,500). Variable costs will remain at $25 per pair of shoes Mansgement is impressed with Oriole'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 Oriole's ideas are used, Current break-ven point pairs of shoes New breakeven point. pairs of shoes Compute the margin of safety ratio for current operations and after Oriole's changes are introduced (Round anawers to O deaimal places, e.g. 1596.) Current margin of safety ratio * New margin of safetyratio Prepare a CVP income statement for current operations and after Oriole's changes are introduced. Would you make the changes suggested? (a) pine ear utio Hiviet, 4.153 Carrew mergingl latuse tatio Prepare a CVPincomestatement for current operations and after Oriole's changes are introduced Would you make the chariges suegested? Oriole Wilitis 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 wilf add $31.900 in fixed costs to the $297,000 currently spent. In addition. Oriole is proposing that a 5% price decrease (\$40 to $38 ) will produce a 25% increase in sales volume (22,000 to 27,500). Variable costs will remain at $25 per pair of shoes Mansgement is impressed with Oriole'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 Oriole's ideas are used, Current break-ven point pairs of shoes New breakeven point. pairs of shoes Compute the margin of safety ratio for current operations and after Oriole's changes are introduced (Round anawers to O deaimal places, e.g. 1596.) Current margin of safety ratio * New margin of safetyratio Prepare a CVP income statement for current operations and after Oriole's changes are introduced. Would you make the changes suggested
