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Problem 11-4 (Part Level Submission) Mary Willis is the advertising manager for Bramble Shoe Store. She is currently working on a major promotional campaigi Her

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Problem 11-4 (Part Level Submission) Mary Willis is the advertising manager for Bramble Shoe Store. She is currently working on a major promotional campaigi Her ideas include the installation of a new lighting system and increased display space that will add $57,600 in fixed costs to the $396,000 currently spent. In addition, Mary 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 Ma ry's ideas but concerned about the effects that these changes will have on the breakeven point and tl' margin of safety. *(3) Your answer is correct. Compute the current breakeven point in units, and compare it to the breakeven point in units if Ma ry's ideas are used. ( Round answers to 0 decimal places, e.g. 1,225.) New breakeven point pairs of shoes Current breakeven point: opairs of shoes Attempts: 6 of 10 "581 \"'03) Your answer is correct. Compute the margin of safety ratio for current operations and after Ma ry's changes are introduced. (Round answers to 0 decimal places, e.g. 15%.) Current margin of safety ratio New margin of safety ratio Attempts: 1 of 10 "581 *(C) Your answer is partially correct. Try again. Prepare a C'v'P income statement for current operations and after Ma ry's changes are introduced. BRAMBLE SHOE STORE CUP Income Statement Current , Would you make the changes suggested? .LlEl

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