Question: Current Attempt in Progress Cullumber Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her

Current Attempt in Progress Cullumber Willis is the advertising manager for Bargain

Current Attempt in Progress Cullumber 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 $37,900 in fixed costs to the $345,600 currently spent. In addition, Cullumber is proposing that a 5% price decrease ($40 to $38) will produce a 25% increase in sales volume (25,600 to 32,000). Variable costs will remain at $25 per pair of shoes. Management is impressed with Cullumber'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 Cullumber's ideas are used. Current break-even point New break-even point eTextbook and Media pairs of shoes pairs of shoes Compute the margin of safety ratio for current operations and after Cullumber's changes are introduced. (Round answers to 0 decimal places, eg. 15%.) Current margin of safety ratio be here to search % Z 11C Cloudy 7

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