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 $54,600 in fixed costs to the $399,000 currently spent. in addition, mary 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 mary’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 mary’s ideas are used. (round answers to 0 decimal places, e. g. 1,225.) current break-even point pairs of shoes new break-even point pairs of shoes
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Mary willis is the advertising manager for bargain shoe store. she is currently working on a major p...
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