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Problem 22-OSA a-c (Video) Surland Willis is the advertising manager for bargain Shoe Store. She is currently working on a major promotional campaign. Her ideas

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Problem 22-OSA a-c (Video) Surland 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 $36,000 in fed costs to the s272,000 currently spent. In addition, Sunland is proposing that a price decrease ($40 to $38) wil produce a 20% increase in sales volume (20,000 to 24,000). Variable costs will remain 524 per pair of shoes. Management is impressed with Sunland's ideas but concerned about the effects that these canges will have on the break-even point and the margin of safety Compute the current break even point in units, and compare it to the break-even point in units of Sunland's ideas are used Current break-even point pain of shoes New break-even point pairs of shoes Compute the margin of safety ratio for current operations and after Sunland's changes are introduced. (Reund answers to decimal places, . 159.) Current margin of safety ratio New margin of safety ratio Prepare a CVP Income statement for current operations and after Sunland's changes are introduced BARGAIN SHOE STORE CVP Income Statement Current New . Yuld you make the changes wested

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