Problem 11-4 (Part Level Submission) Mary Willis is the advertising manager for Blue Spruce Shoe Store. She is currently working on a major promotional campaign. Her ideas indlude the installation of a new lighting system and increased display space that will add $51,000 in fixed costs to the $411,000 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 Mary's ideas but concerned about the effects that these changes will have on the break-even point and the margin of safety (a) Your answer is correct. Compute the current break-even point in units, and compare it to the break-even point in units if Mary's ideas are used. (Round answers to 0 decimal places, e.g. L.225.) 17,125 pairs of shoes Current break-even point 22000 pairs of shoes New break-even point SHOW SOLUTION (b) Compute the margin of safety rtio for current operations and after Mary's changes are introduced. (Round answers to 0 decimal places, e.g. 15 %. ) Current margin of safety ratio New margin of safety ratio %