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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 indlude the
Problem 19-4A Mary Willis is the advertising manager for Bargain 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 $10,000 in fixed costs to the $144,000 currently spent. In addition, Mary is proposing that a S% price decrease $20 to S19 will produce a 20% increase in sales volume 20,000 to 24,000). Variable costs will remain at S12 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. point and thile 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. 1,225) Current break-even point New break-even point pairs of shoes pairs of shoes INK TO TEXT LINK TO TEXT LINK TO TEXT the margin of Compute safety ratio for current operations and aner Mary's changes are introduced. (Round answers to 0 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 Would you make the changes suggested
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