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Prepare a CVP income statement for current operations and after Sandhill's changes are introduced. BARGAIN SHOE STORE CVP Income Statement Current New $ $ V
Prepare a CVP income statement for current operations and after Sandhill's changes are introduced. BARGAIN SHOE STORE CVP Income Statement Current New $ $ V $ $Sandhill 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 $34,800 in xed costs to the $324,000 currently spent. In addition, Sandhill is proposing that a 5% price decrease ($40 to $38} will produce a 25% increase in sales volume (24,000 to 30,000). Variable costs will remain at $25 per pair of shoes. Management is impressed with Sandhill's ideas but concerned about the effects that these changes will have on the brea k-even point and the margin of safety
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