15 Feb Elizabeth brown is the advertising manager for oriole Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of a new lighting sys
elizabeth brown is the advertising manager for oriole 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 $15840 in fixed costs to the $190080 currently spent. In addition, she is proposing that a 10% price decrease ($30 to $27) will produce a 20% increase in sales volume (17600 to 21120). Variable costs will remain at $12 per pair of shoes. Management is impressed with elizabeth ideas but are concerned bout the effects that these changes will have on break even point and the margin of safety.
calculate the current break even points in units and compare it with break even point in units if elizabeths idea are used.
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