Tom 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 $54,600 in fixed costs to the $399,000 currently spent. In addition, Tom is proposing that a 5% price decrease ($60 to $57) will produce a 20% increase in sales volume (20,000 to 24,000). Variable costs will remain at $36 per pair of shoes. Management is impressed with Toms ideas but concerned about the effects that these changes will have on the break-even point and the margin of safety. 1)Compute the current break-even point in units, and compare it to the break-even point in units if Toms ideas are used. Current Break even point: New Break even point: 2) Compute the margin of safety ratio for current operations and after Toms changes are introduced. 3)Current margin of safety ratio: New margin of safety ratio: Prepare a CVP income statement for current operations and after Toms changes are introduced. Would you make the changes suggested ? Yes or No