Show Attempt History 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. Your answer is incorrect. 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 13 pairs of shoes pairs of shoes Your answer is partially correct. Prepare a CVP income statement for current operations and after Cullumber's changes are introduced. Sales Variable Expenses Contribution Margin Fixed Expenses Net Income/(Loss) $ BARGAIN SHOE STORE CVP Income Statement Current Would you make the changes suggested? No eTextbook and Media 921,600 New 1,216,000 576,000 800,000 345,600 345,600 0 $ 416.000 383,500 32.500 11C Cloudy