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please help Betty Willis is the advertising marager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her ideas include the
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Betty Willis is the advertising marager 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 $23.600 in food costs to the $129.000 currently spent. In addition, Betty is proposing that a 5% price decrease ( $20 to $19 ) will produce a 208 increase in sales volume (20,000 to 24,000). Variable costs will remain at $12 per pair of shoes. Management is impressed with Betty/s ideas but concerned about the effects that these changes will have on the break-even point and the margin of safety. (3) Prepare a CVP income statement for current operations and after Betty's changes are introduced. Would you make the changes suggested? Compute the current break-even point in sales units, and compare it to the break-even point in sales units if Bettys ideas are implemented, (Round answers to 0 decimal places, eg. 5.275.) Current break-even point pairs of shoes New break-even point pairs of shoes eTextbook and Media (c) Compute the margin of safety ratio for current operations and after Betty's changes are introduced. (Round answers to 0 decimal places, es, 15\%) Current margin of safety ratio New margin of safety ratio % Step by Step Solution
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