Business, 07.04.2020 04:56 mmaglaya1

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 lighiting system and increased display space that will add $24,000 in fixed costs to the $270,000 currently spent. In addition, Mary is proposing that a 5% price decrease ($40 to $38) will produce a 20% increase in sales volume (20,000 to 24,000). Variable costs will remain at 24$ per pair of shoes. Management is impresssed with Mary's ideas but concerened about the effects that these changes will have on the break-even-point and the margin of safety.

Compute the current break-even-points in units, and compare it to the break-even-point in units if Mary's ideas are used

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Mary Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major p...