Nancy Jackson is the advertising manager for Blossom Shoe Store. She is currently working on a major promotional campaign. Her Calculate the margin of safety ratio for current operations and after Nancy's changes are introduced. $($Round final answers to $2$

decimal places, e$.$g$.15\mathrm{.}25\%)$

Current margin of safety ratio

Margin of safety ratio Nancy's changes are introduced

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uestion Part Score

Prepare CVP income statements for current operations and after Nancy's changes are introduced, for the year ended December

$31,2022.$

ideas include the installation of a new lighting system and increased display space that will add $$18,360$ in fixed costs to the $$220,320$

currently spent. In addition, Nancy is proposing that a $10\%$ price decrease $($ $$30$ to $$27)$ will produce a $20\%$ increase in sales volume

$(20,400$ to $24,480).$ Variable costs will remain at $$12$ per pair of shoes. Management is impressed with Nancy'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 Nancy's ideas are used.

eTextbook and Media

Question Part Score

Calculate the margin of safety ratio for current operations and after Nancy's changes are introduced. $($Round final answers to $2$

decimal places, e$.$g$.15\mathrm{.}25\%)$