Mary Willis is the advertising manager for Riverbed 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 $39,000 in fixed costs to the $423,000 currently spent. In addition, Mary 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 Mary's ideas but concerned about the effects that these changes will have on the break-even point and the margin of safety. (a) Your answer is partially correct Compute the current break-even point in units, and compare it to the break-even point in units it Mary's ideas are used. (Round answers to decimal places, eg. 1.225) 17625 pairs of shoes Current break-even point New break-even point 21,285 pairs of shoes eTextbook and Media Assistance Used Solution Current break-even point $60X $24X X $36X + $423,000 (where X=pairs of shoes) $423,000 17,625 pairs of shoes $36X + (5423,000 $39.000) $462.000 22.00 naissans New break-even point: $57X $21% KRodriquez izse my geu.edu geukroela Solution Current break-even point: S60X = $36X - $423.000 (where X -pairs of shoes) $423,000 17,625 pairs of shoes $36X + (5423,000 + $39,000) $462.000 22.000 pairs of shoes $24X - $57% $21% X- New break-even point: Attempts: 3 of 3 used (b) Compute the margin of safety ratio for current operations and after Mary's changes are introduced. (Round answers to decimal places, es 15%) Current margin of safety ratio New margin of safety ratio eTextbook and Media Savetor Liner Attempts: 0 of 3 used Submit Answer (c) K Rodriguez izse my genoedu geukaera ht =10 Dove