NEXT CALCULATOR PRINTER VERSION BACK Problem 22-05A a-c (Video) (Part Level Submission) Pharoah 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 $14,000 in fixed costs to the $133,000 currently spent. In addition, Pharoah 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 Pharoah's ideas but concerned about the effects that these changes will have on the break- even point and the margin of safety. on) Your answer is correct udy Compute the current break-even point in units, and compare it to the break-even point in units if Pharoah's ideas are used. Current break-even point New break-even point Click if you would like to Show Work for this question: 16,625 pairs of shoes 21,000 pairs of shoes 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: 1 of 15 used your answer is correct. Compute the margin of safety ratio for current operations and after Pharoah's changes are introduced. (Round answers to 0 decimal places, e.g. 15%.) Current margin of safety ratio New margin of safety ratio Open Show Work Click if you would like to Show Work for this question: Compute the margin of safety ratio for current operations and after Pharoah's changes are introduced. (Rou to 0 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: 171% 13 % Open Show Work By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Poli your instructor Attempts: 1 of 15 used Prepare a CVP income statement or current operations and after Pharoah's changes are introduced. BARGAIN SHOE STORE CVP Income Statement Current New Would you make the changes suggested? Click if you would like to Show Work for this question: Open Show Work