lice Oritz is the advertising manager for Value Shoe Store. She is currently working on a major promotional campaign. Her ideas nclude the installation of a new lighting system and increased display space that will add $35,910 in fixed costs to the $227,430 aurrently spent. In addition, Alice is proposing that a 10% price decrease ($35 to $31.50) will produce a 20% Increase in sales olume (19,000 to 22,800). 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. units Current break-even point units Break-even point if Alice's ideas are used International Fabrics has budgeted Overhead costs of $1,098,880, it has allocated overhead on a plant wide basis to its two products (wool and cotton) using direct labour hours, which are estimated to be 549,440 for the current year. The company decided to experiment with activity-based costing and has created two activity cost pools and related activity cost drivers. These two cost pools are cutting (the cost driver is machine hours) and design (the cost driver is the number of set-upsi. Overhead allocated to the cutting cost pool is $424,400 and $697.950 is allocated to the design cost pool. Additional information related to these pools is as follows: Wool Cotton Total 106,100 106,100 212.200 Machine hours Number of set-ups 1.410 705 2.115