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Laura Hall is the advertising manaser for Wildhorse Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of
Laura Hall is the advertising manaser for Wildhorse Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of a new lightinis system and increased display space that will odd $21.940 in freed costs to the 5263.520 currently spent, in addition, Laura is proposing that a 105 price decrease (\$30 to $27) will produce a 2056 increase in sales volume 124,400 ta 29,280. Var lable costs will temainat $12 per pair of shoes. Management is impressed with Laura'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 compoce it wath the break even point in units if Laura's ideas are used. Calculate the margin of salety ratio for current operations and aftier Laura's changes are introduced. (Round final onswen to 2 toclinat ploces, ey 152520 Prepare CVP incomestatenchts for curtent operations and atter Laura's changes are introduced, for the year ented December 31. 2022 Would you make the changes supgested
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