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Crane Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of

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Crane 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 $36,540 in fixed costs to the $340,200 currently spent. In addition, Crane is proposing that a 5% price decrease ($40 to $38) will produce a 25% increase in sales volume (25,200 to 31,500). Variable costs will remain at $25 per pair of shoes. Management is impressed with Crane's ideas but concerned about the effects that these changes will have on the break-even point and the margin of safety. (c) Prepare a CVP income statement for current operations and after Crane's changes are introduced. BARGAIN SHOE STORE CVP Income Statement Current New $ 630000 $ $ Would you make the changes suggested

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