Prepare CVP income statement for current operations and after Donna's changes are introduced,for the year ended December 31,2022

Donna Clark is the advertising manager for Pharoah 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 $20,160 in fixed costs to the $241,920 currently spent. In addition, Donna is proposing that a 10% price decrease ($30 to $27) will produce a 20% increase in sales volume (22.400 to 26,880). Variable costs will remain at $12 per pair of shoes. Management is impressed with Donna's ideas but are concerned about the effects that these changes will have on the break-even point and the margin of safety. V Your answer is correct. Calculate the current break-even point in units. and compare it with the break-even point in units if Donna's ideas are used. Current break-even point 13.440 units Breakeven point if Donna's ideas are used . 17472 units eTextbook and Media Question Part Score 1/1 'I Your answer is correct. Calculate the margin of safety ratio for current operations and after Donn a's changes are introduced. [Round nal answers to 2 decimal places. 2.3. 15.25%) Current margin of safety ratio ' I I as Margin of safety ratio Donna's changes are introduced 3 96 ' e'l'extbook and Media A