Question 5 of 6 < -/9 = : View Policies Current Attempt in Progress Blossom 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 $35,960 in fixed costs to the $334,800 currently spent. In addition, Blossom is proposing that a 5% price decrease ($40 to $38) will produce a 25% increase in sales volume (24,800 to 31,000). Variable costs will remain at $25 per pair of shoes. Management is impressed with Blossom'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 Blossom's ideas are used. Current break-even point pairs of shoes New break-even point pairs of shoes > (b) Compute the margin of safety ratio for current operations and after Blossom's changes are introduced. (Round answers to O decimal places, e.g. 15%.) Current margin of safety ratio % New margin of safety ratio % BARGAIN SHOE STORE CVP Income Statement Current $ $ Would you make the changes suggested? $ $ New