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 (a) 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 point 1602 pairs of shoes New break-even point 21000 pairs of shoes Festion 5 of 5 ic Porac Pincome into current section and after Parcs channel BARGAIN SHOE STORE CVP Income Statement Cat New Would you make the dance sted! 27 BV 33 TS $ 3 5 . 7 8 E R T Y D F G G H K C V 00 B N M