CALCULATOR PRINTER VERSION BACK Problem 18-4A Mary 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 ighting system and increased display space that will add $49,200 in fixed costs to the $396,000 currently spent. In addition, Mary is proposing that a 5% price decrease (560 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 Mary's ideas but concerned about the effects that these changes will have on the break-even point and the margin of safety. Your answer is partially correct. Try again. Compute the current break-even point in units, and compare it to the break-even point in units if Mary's ideas are used. (Round answers to o decimal places, e.g. 1,225.) Current break-even point T 18550 pairs of shoes New break-even point 2 1200 pairs of shoes LINK TO TEXT TO TEXT LINK TO TEXT CALCULATOR PRINTER VER x Your answer is incorrect. Try again. Compute the margin of safety ratio for current operations and after Mary's changes are introduced. (Round answers to o decimal places, eg. 159 Current margin of safety ratio New margin of safety ratio LINK TO TEXT LINK TO TEXT LINK TO TEXT Your answer is partially correct. Try again. Prepare a CVP income statement for current operations and after Mary's changes are introduced. BARGAIN SHOE STORE CVP Income Statement Current New Sales 1200000 1368000 Variable Expenses -720000 -864000 Contribution Margin 480000 504000 Fixed Expenses 445200 445200 Net Income/(Loss) 34800 58800