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P 2 2 . 5 ( L 0 3 , 4 , 5 ) , E Mary Willis is the advertising manager for Bargain Shoe

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P22.5(L03,4,5), E Mary 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 $29,000 in fixed costs to the $270,000 currently spent. In addi-
tion, Mary is proposing that a 5% price decrease ( $40 to $38) will produce a 25% increase in sales volume
to 25,000
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