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Question 7 Pharoah Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her ideas include the

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Question 7 Pharoah 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 $27,600 in fixed costs to the $ 272,000 currently spent. In addition, Pharoah 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 shoes. Management is impressed with Pharoah's ideas but concerned about the effects that these changes 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 if Pharoah's ideas are used. Current break-even point pairs of shoes New break-even point pairs of shoes Attempts: 0 of 4 usedC Check

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