Question 3 (20 marks) Sammy is the marketing officer for Sure-win Sportswear Store. She is currently working on a major promotional campaign. Her ideas include the installation of a new lighting system and increased dis- play space that will add $24,000 in fixed costs to the $270,000 currently spent. In addition, Sammy is proposing that a 5% price decrease ($40 to $38) will produce a 20% increase in sales volume (20,000 to 24,000). Variable costs will remain at $24 per pair of running shoes. The manager agreed with Sammy's ideas but concerned about the effects that these changes will have on the break-even point and the margin of safety. From the information, determine the total amount of: (a) Compute the current break-even point in units and compare it to the break-even point in units if Sammy's ideas are used. (b) (6 marks) Compute the margin of safety ratio for current operations and after Sammy's changes are in- troduced. (Round to the nearest 1 percent) (6 marks) (c) Prepare a CVP income statement for current operations and after Sammy's changes are intro- duced. (Show column for total amounts only.) Discuss whether you would make the changes suggested. (8 marks)