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Donna Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of
Donna 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 $27.600 in fixed costs to the $272,000 currently spent. In addition, Donna is proposing that a 56 price decrease ($40 to $38) will produce a 20% increase in sales volume (20.000 to 24.0001 Viriable costs will remain at $24 per pair of shoes. Management is impressed with Donna's ideas but concerned about the effects that these changes will have on the break even point and the margin of safet (a) Your answer is correct Prepare a CVP income statement for current operations and after Denna's changes are introduced. BARGAIN SHOE STORE CVP Income Statement Current New Sales Virtable Expemes Cartribution Margin i Fed Exam Net Incom/Lo 400000 300000 55000 200 (b) Compute the current break-even point in sales units, and compare it to the break-even point in sales units if Donna's ideas are implemented. (Round answers to 0 decimal places, es. 5,27 Current break-even point New break-even point pairs of shoes pairs of shoes eTextbook and Media Save for Later (c) The parts of this question must be completed in order. This part will be available when you complete the part above Attempts: C
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