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Problem 18-5A - (Part Level Submission) (Video) Once Willis is the advertising manager for Bergen Shoe Store. She is currently working on a major promotional
Problem 18-5A - (Part Level Submission) (Video) Once Willis is the advertising manager for Bergen Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of a new lighting system and increased display pace that will add $34,200 in ved costs to the $411,000 currently spent. In addition, Orole is proposing that a 5 price decrease (560 to 55) 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 Oriola's ideas out concerned about the effects that these changes will have on the break-even point and the margin of safety Your raver come Compute the current bruk aven points, and compare it to the break point in units i Orioles ideas are used. Current break-even point 1752 pairs of Now break-even point 21200 pair of shoes SHOW OR WARE LINK TO LINK TO TEXT Attempts: 1 of 5 used Your answer la partially come. Try again. Compute the margin of nietysti for current operation and her role's thanger entroduces (Hound newers to decimal places 15 Current margin of safety rato 18 w min of my ratio Prepare a CVP income statement for current operations and after Oriole's changes are introduced BARGAIN SHOE STORE CVP Income Statement Current New $
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