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ACG 2071 CVP Analysis Class Problem #4 Amanda Kerney is the advertising manager for Sexy Shoes, LLC. She is currently working on a major promotional campaign. Her ideas include the installation of a new lighting system and increased display that will add $34,000 in fixed costs to the currently $270,000 spent. In addition, the current selling price per shoe is $40, and she is proposing a 5% price decrease, which she feels will produce a 20% increase in sales volume, from their current volume of 20,000 shoes per year. Variable costs will remain the same at $22 per pair of shoes. Management is impressed with Amanda's ideas but is concerned on what affect these changes will have on breakeven point and the margin of safety. 1. Compute the current breakeven point in units, and calculate the new breakeven point in units. 2. Compute the margin of safety in sales $$ after Amanda's ideas are implemented. 3. Do a comparison on net income (before and after the changes made) using a contribution margin approach. Should the changes be made