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Lisa Wais h the advertising manager for Bargan 5 hot Store she is currenthy worlang an a major promoticoal campalin Her idea: Indude the installation
Lisa Wais h the advertising manager for Bargan 5 hot Store she is currenthy worlang an a major promoticoal campalin Her idea: Indude the installation of a new lighlingsysens and lncrosed dlplayspoce that wil add $18,000 as foced costs to the $129,000 currentiy spent, in additiorh tisa ts propeding that a 5% price decrease (\$20 to 519) wili produce a 205 increate in sales volume i20,000 to 24,000, Varlable costs will remain at $12 per gal of Jhoes. Mansgement is impressed with bsars ideas but concerned about the effects that these chances witl have on the breakeven point and the margin of safety. (3) Prepare a CVP income statement for curref operations and after tisa's churges are introduced
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