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please send full answer Sarah Allen is the advertising manager for Blossom Shoe Store. She is currently working on a major promotional campaign. Her ideas
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Sarah Allen is the advertising manager for Blossom 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 $22,320 in fixed costs to the $267,840 currently spent. In addition, Sarah is proposing that a 10% price decrease ($27 to $24) will produce a 20% increase in sales volume (24,800 to 29,760). Variable costs will remain at $12 per pair of shoes. Management is impressed with Sarah's ideas but are concerned about the effects that these changes will have on the break-even point and the margin of safety. Calculate the current break-even point in units, and compare it with the break-even point in units if Sarah's ideas are used. Current break-even point units Break-even point if Sarah's ideas are used units Calculate the margin of safety ratio for current operations and after Sarah's changes are introduced. (Round final answers to 2 decimal places, eg. 15.25\%) Prepare CVP income statements for current operations and after Sarah's changes are introduced, for the year ended December 31, 2022. Would you make the changes suggestedStep by Step Solution
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