Svetlana Pace is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign.

Svetlana Pace is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her ideas includethe installation of a new lighting system and increased display space that will add $38,230 in fixed costs to the $274,220 currently spent. In addition,Svetlana is proposing that a 5% price decrease ($38 to $36) will produce a 20% increase in sales volume (19,710 to 23,652). Variable costs will remain at $21per pair of shoes. Management is impressed with Svetlana’s ideas but concerned about the effects that these changes will have on the break-even point and themargin of safety.

Compute the current break even point in units, and compare it to the break even point in units if svetlanas ideas are used.

Current Break even point ________pairs of shoes

New Break even point _________pairs of shoes

Compute the margin of safety ratio for current operiations and after svetlanas changes are introduce.

Current Percentage _____%

New Percentage _____%

Prepare CVP income statement for current operations and after Svetlanas changes are introduced.


CVP Income Statement

Current New

Sales __________ __________

Variable Expenses __________ __________

Contribution margin __________ __________

Fixed Expenses __________ __________

Net Income __________ __________

Would you make the changes suggested? Y/N?

Calculate your essay price
(550 words)

Approximate price: $

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)
Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more