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W. M Mary Willis is the advertising manager for Bargain Shoe Store. She is currer working on a major promotional campaign. Her ideas include the

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W. M Mary Willis is the advertising manager for Bargain Shoe Store. She is currer working on a major promotional campaign. Her ideas include the installation of a lighting system and increased display space that will add $24,000 in fixed conts to $270,000 currently spent. In addition, Mary is proposing that a 5% price decrease ( $4 ) $38 ) will produce a 20%6 increase in sales volume (20,000 to 24,000). Variable costs will main at $24 per pair of shoes. Management is impressed with Mary's ideas but concer about the effects that these changes will have on the break-even point and the maroif safety. Instructions (a) Compute the current break-even point in units, and compare it to the break-even pg in units if Mary's ideas are used. (b) Compute the margin of safety ratio for current operations and after Mary's chan are introduced. (Round to nearest full percent.) (c) Prepare a CVP income statement for current operations and after Mary's changes introduced. (Show column for total amounts only.) Would you make the chan suggested

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