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LE Problem 22-OSA a-c (Video) (Part Level Submission) Carla Vista Willis is the advertising manager for Bargain Shoe Store. She is currently working on a

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LE Problem 22-OSA a-c (Video) (Part Level Submission) Carla Vista Willis 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 will add $18,200 in fixed costs to the $133,000 currently spent. In addition, Carla Vista is proposing that a 5% price decrease ($20 to $19) will produce a 20% increase in sales volume (20,000 to 24,000). Variable costs will remain at $12 per pair of shoes. Management is impressed with Carla Vista's ideas but concerned about the effects that these changes will have on the break-even point and the margin of safety. (b) Compute the margin of safety ratio for current operations and after Carla Vista's changes are introduced. (Round answers to o decimal places, e.g. 15%.) Current margin of safety ratio New margin of safety ratio % Click If you would like to Show Work for this question: Open Show Work By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor Attempts: 0 of 15 used SAVE FOR LATER

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