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Question 5 of 6 View Policies < Current Attempt in Progress -19 !!! Oriole Willis is the advertising manager for Bargain Shoe Store. She

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Question 5 of 6 View Policies < Current Attempt in Progress -19 !!! Oriole 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 $31,900 in fixed costs to the $297,000 currently spent. In addition, Oriole is proposing that a 5% price decrease ($40 to $38) will produce a 25% increase in sales volume (22,000 to 27,500). Variable costs will remain at $25 per pair of shoes. Management is impressed with Oriole's ideas but concerned about the effects that these changes will have on the break-even point and the margin of safety. (a) Compute the current break-even point in units, and compare it to the break-even point in units if Oriole's ideas are used. Current break-even point New break-even point pairs of shoes pairs of shoes eTextbook and Media Save for Later (b) Attempts: 0 of 5 used. Submit Answer

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