Problem 5-5A a-c (Video) (Part Level Submission) Oriole 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 $34,200 in fixed costs to the $411,000 currently spent. In addition, Oriole 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 Oriole's ideas but concerned about the effects that these changes will have on the break-even point and the margin of safety. (a) Compute the current break-even point in units, and compare it to the break-even point in units if Oriole's ideas are used. Current break-even point pairs of shoes New break-even point pairs of shoes Click if you would like to Show Work for this question: Open Show Work By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. *Problem 5-1A The controller of Ivanhoe Production has collected the following monthly expense data for analyzing the cost behavior of electricity costs. Total Total Electricity Costs Machine Hours $2,700 300 3,030 340 3,580 4,630 3,250 January February March April May June July August September October November December 4,880 4,140 3,870 5,160 4,270 3,200 6,270 340 810 Determine the fixed- and variable-cost components using the high-low method. Fixed-costs Variable-costs What electricity cost does the cost equation estimate for a level of activity of 460 machine hours? Electricity costs By what amount does this differ from March's observed cost for 460 machine hours? Amount differ What electricity cost does the cost equation estimate for a level of activity of 790 machine hours? Electricity costs By what amount does this differ from June's observed cost for 790 machine hours? Amount differ