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Problem 22-05A a-c (Video) (Part Level Submission) and inc eased display space that wi add $18,000 in fixed costs to the S 129,000 cu ently

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Problem 22-05A a-c (Video) (Part Level Submission) and inc eased display space that wi add $18,000 in fixed costs to the S 129,000 cu ently spent. In addition w r orse is proposing that a 5% price o crease S20 to S19 I prod a 20% increase sales volume 20 000 to 24 000 Variable costs wil remain at $12 per par of shoes. Management is impressed with wil horses ideas but concerned about the emects that these changes will have on the break-even point and the margin of safety. (a) Your answer is correct. Compute the caurrent break-even point in units, and compare it to the break-evch point in units ir wihorse's ideas are used point in units if Wildhorse's ideas are used. Current break-even point 6125 pairs of shoes New break-even point pairs of shoes Y (c) Prepere a CVD income statement for current operations and after Wildhorse's changes are introduced BARGAIN SHOE STORE CVP Income Statement

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