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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

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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 wil add $ 27,600 in fixed costs to the $ 272,000 currently spent. In addition, Pharoah 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 with Pharoah's ideas but concerned about the effects that these changes will have on the break-even point and the margin of safety. Your answer is correct. 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 pointpairs of shoes New break-even point pairs of shoes Attempts: 1 of 4 used Compute the margin of safety ratio for current operations and after Pharoah's changes are introduced. (Round answers to O decimal places, eg. 15%) Current margin of safety ratio New margin of safety ratio Attempts: 0 of 4 used Check Answer The parts of this question must be completed in order This part will be available when you complete the part

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