USA Margin of safety and break even point problem?

Feb 4, 2021
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The Sales manager for clothes store is currently working on a campaign. She wants to install a new lighting system and increased display space that will add $14,250 in fixed costs to the $173,850 currently spent. In addition, she is proposing that a 10% price decrease ($25 to $22.50) will produce a 20% increase in sales volume (19,000 to 22,800). Variable costs will remain at $10 per pair of shoes. Management are impressed with her ideas but are concerned about the effects that these changes will have on the break-even point and the margin of safety.

A) Whats the current break even point?

B) Break even point if her ideas are used?

C) Current margin of safety ratio %

D) Margin of safety ratio if her changes are introduced %

E) I need to do an income statement for current operations and after manager's changes are introduced. How do I do this?

I worked A and B and got 11,590 units and 15,048 respectively.

So I just need help with C, D and E. I'm having a hard time identifying the actual sales number because for some reason my MOS are negative and i know that is wrong. Can you please help me?
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