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Please help thank you Problem 22-05A a-c (Video) Pharoah Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major
Please help thank you Problem 22-05A a-c (Video) Pharoah Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her ideas include the instalation 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 59% price decrease ($20 to 519) will produce a 20% increase in sales volume 20,000 to 24,000 na le costs will reman at $12 per pair of shoes. Management si pressed with Pharoah s ideas but concerned about the effects that these changes will have on the break-even point and the margin of safety 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 New break-even point pairs of shoes pairs of shoes OTEXT LINK TO TEXT Compute the margin of safety ratio for current operations and after Pharoah's changes are introduced. (Round answers to Current margin of safety ratio New margin of safety ratio Prepare a CVP income statement for current operations and after Pharoah's changes are introduced. BARGAIN SHOE STORE CVP Income Statement Current New Would you make the changes suggested
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