Dorothy 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 $16,600 in fixed costs to the $136,000 currently spent. In addition, Dorothy is proposing that a 5% price decrease ($20 to $19) will produce a 20% increase in sales volume (20,000 to 24,000). Variable costs will remain at $12 per pair of shoes. Management is impressed with Dorothy's ideas but concerned about the effects that these changes will have on the break-even point and the margin of safety. (a) Prepare a CVP income statement for current operations and after Dorothy's changes are introduced. Sales Variable Expenses Contribution Margin Fixed Expenses $ Net Income/(Loss) $ BARGAIN SHOE STORE CVP Income Statement Current $ New