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Problem 19-4A Mary Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her ideas include the

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Problem 19-4A Mary Willis is the advertising manager for Bargain 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 $57,600 in fixed costs to the $387,600 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. Compute the current break-even point units, and compare it to the break-even point in units if Mary's ideas are used. (Round answers to o decimal places, e.g. 1,225.) Current break-even point New break-even point pairs of shoes pairs of shoes Compute the margin of safety ratio for current operations and after Mary's changes are introduced. (Round answers to o decimal places, e.g. 15%.) Current margin of safety ratio New margin of safety ratio Prepare a CVP income statement for current operations and after Mary's changes are introduced. BARGAIN SHOE STORE CVP Income Statement Current New $ V Would you make the changes suggested

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