P5.5A (LO3,4,5), E Mary Willis is the advertising manager for Bargain Shoe Store. She is currently Compute breat-rivn point working on a major promotional campaign. Her ideas include the installation of a new lighting system of sofety nutlo, and prepare and increased display space that will add $24,000 in fixed costs to the $270,000 currently spent. In addi- income starement before and tion. Mary is proposing that a 5% price decrease ($40 to $38) will produce a 20% increase in sales volume (20,000 to 24,000). Variable costs will remain at $24 per pair of shoes. Management is impressed CHAPTER 5 Cost-Volume-Profit with Mary's ideas (ut concerned about the effects that these changes will have on the break-even point and the margin of sllety. Instructions a. Compate the current break-even point in units, and compare it to the break-even point in units if Mary's ideas are used. b. Compute the margin of safety natio for current operations and after Mary's changes are introduced. - Current margin of safety (Round to nearest full percent.) c. Prepare a CVP income statement for current operations and after Mary's changes are introduced. (Show column for total amounts only.) Would you make the changes suggested