Linda 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 $57,600 in fixed costs to the $396,000 currently spent. In addition, Linda is proposing that a 5% price decrease ($60 to $57) will produce a 20% increase in sales volume (20,000 to 24,000). Variable costs will remain at $36 per pair of shoes. Management is impressed with Linda's ideas but concerned about the effects that these changes will have on the break-even point and the margin of safety (a) Prepare a CVP income statement for current operations and after Linda's changes are introduced. BARGAIN SHOE STORE CVP Income Statement Current New Fixed Expenses Selling Expenses Contribution Margin $ Would you make the changes suggested? (6) Compute the current break-even point in sales units, and compare it to the break-even point in sates units if Linda's ideas are implemented(Round answers to decimal places, eg. 5,275.) Current break-even point pairs of shoes New break-even point pairs of shoes e Textbook and Media Save for Later Attempts: 0 of 2 used Submit Answer (c) Compute the margin of safety ratio for current operations and after Linda's changes are introduced (Round answers to decimal places, eg. 15%.) Current margin of safety ratio % New margin of safety ratio % e Textbook and Media Attempts: 0 of 2 used Submit Answer Save for Later