Question: please do in excel if possible P22.5 (103,4,5), E Mary Willis is the advertising manager for Bargain Shoe Store. She is currently working on a
P22.5 (103,4,5), E 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 lighting system and increased display space that will add $29,000 in fixed costs to the $270,000 currently spent. In addition, Mary is proposing that a 5% price decrease ($40 to $38) will produce a 25% increase in sales wolume (20,000 to 25,000). Variable costs will remain at $25 per pair of shoes. Management is imptessed with Mary's ideas but concerned about the effects that these changes will have on the breakeven point and the margin of safety. Instructions Prepare a CVP income statement for current operations and after Mary's chantes are introduced. (Show column fot total amounts only.) Would you make the changes suegered? Compute the cumtent break even point in sales units, and compare it to the break even point his sles unitsii Mary's ideas are implemented. Compute the margin of safety ratio for current operations and after Mary's changes are introduced. (Round to nearest full percent.) c. Current marsin of satety ratio 10x Compute contritution margin, fixed costs, bresk even boint, salos fot target net inconve, and margin of safety ratio
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