Ruth 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 fixed costs to the $272,000 currently spent. In addition, Ruth 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 Ruth's ideas but concerned about the effects that these changes will have on the break-even point and the margin of safety. Prepare a CVP income statement for current operations and after Ruth's changes are introduced. BARGAIN SHOE STORE CVP Income Statement Current New Sales Variable Expenses Contribution Margin Fixed Expenses Net Income/(Loss) 800000 480000 320000 272000 48000 912000 576000 336000 308000 28000 Compute the current break-even point in sales units, and compare it to the break-even point in sales units if Ruth's ideas are implemented. (Round answers to O decimal places, e.g. 5,275.) Current break-even point New break-even point pairs of shoes pairs of shoes