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Please explain how you got the answer! I seem to be getting confused! Thank you in advance :) Crane Willis is the advertising manager for
Please explain how you got the answer! I seem to be getting confused! Thank you in advance :)
Crane 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 $51,000 in fixed costs to the $411,000 currently spent. In addition, Crane is proposing that a 5% price decrease ($60 to $57) will produce a 20% increase in sales volume (20,000 to 24,000). Variable costs will remain at $36 per pair of shoes. Management is impressed with Crane's ideas but concerned about the effects that these changes will have on the break-even point and the margin of safety. (a) Compute the current break-even point in units, and compare it to the break-even point in units if Crane's ideas are used. Current break-even point pairs of shoes New break-even point pairs of shoes e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (b) The parts of this question must be completed in order. This part will be available when you complete the part above. (c) The parts of this question must be completed in order. This part will be available when you complete the part aboveStep by Step Solution
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