Sunland Willis is the advertising manager for Bargain Shoe Store She is currently working on...
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Sunland 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 $32,400 in fixed costs to the $417,000 currently spent. In addition, Sunland 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 Sunland'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 Sunland's ideas are used. Current break even point New break-even point poirs of shoes paits of shoes eTextbook and Media
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